Police Shoot Two Partygoers In Melbourne Nightclub

ABC News is reporting that two people were shot by police shortly after 3am this morning at Melbourne's Inflation Nightclub.

Police had been advised that there was an armed man in the upstairs area of the King St venue early on Saturday morning.

It is believed that the club was hosting a costume party and that the injured man was dressed as The Joker and had advised security that the gun was fake. It is reported that security had also informed the police it was prop gun.

When police arrived they attempted to talk to the man but when he pulled out what officers thought was a weapon, the man was shot in the chest.

A nearby woman was also shot in the leg.

According to a police spokesperson, the "firearm" was levelled at police who then "asked the man to drop it and he didn't, police at that stage were not aware whether it was an imitation or a fire arm."

Both shooting victims were taken to hospital, the man is reported to be in a stable condition and the woman is said to have suffered non-life-threatening injuries.

According to News Ltd, the party Inflation was hosting last night was the latest Saints & Sinners event.