Police are investigating whether a fatal siege in the foyer of a Brighton apartment block was terror-related after Seven News received a chilling phone call from the address.

The siege, which left two men dead, ended in a shootout with three police officers injured and a female hostage rescued from a Melbourne apartment building.

Police shot the gunman dead after discovering the body of another man in the foyer of an apartment building in Brighton when the siege began at about 4pm on Monday.

Victoria Police Deputy Commissioner Andrew Crisp said the gunman, who has not been officially identified as yet, left the building about 6pm and opened fire on police officers, hitting three of them.

View photos An ambulance at the scene. Photo: 7 News More

View photos The scene of the hostage incident. Source: 7 News More

They returned fire and killed him - two police officers were taken to hospital, while another was treated at the scene. Police have said their injuries are not life-threatening.

Seven News in Melbourne received a phone call from a man who said: "This is for IS. This is for Al-Qaeda" shortly before the shootout.

The Herald Sun has reported the gunman was known to counter-terrorism police.

But the police would not confirm this at a press conference on Monday evening and said he had not been officially identified.

"Terrorism is one line of inquiry in relation to this matter. It is early days," Deputy Commissioner Crisp told reporters.

View photos Officers at the scene during the siege. Photo: 7 News More

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