Police in Melbourne are searching for two suspects after a man was shot dead and two others were wounded in an "extremely disturbing" incident outside a boxing tournament last night.

Key points: Multiple shots were fired outside the boxing tournament

Multiple shots were fired outside the boxing tournament Police said the victims were known to police but would not specify how

Police said the victims were known to police but would not specify how Two suspects are being hunted by police after they fled the scene on foot

There were about 650 people inside the Melbourne Pavilion in Kensington for the World Boxing Association Oceania tournament when the shooting took place.

One man was shot out the front of the building and died at the scene.

Two men aged in their 20s and 30s were also wounded at the venue with one shot in the foyer of the building.

One of the men is in a critical condition in hospital.

Investigators are searching for two offenders who ran off after the shooting.

Police are still looking for two suspects. ( ABC News )

Police have obtained CCTV footage of "various activities" around the venue at the time, Victoria Police Detective Sergeant Sol Soloman said.

He said they were investigating whether there was any link to reports a fight broke out between two groups inside the venue.

"At this point in time we have not identified those responsible for the shooting, we have not identified the motive, however the information we have gleaned so far makes us confident that this was a targeted attack," he said.

"We can't say if all three were targeted but they may have been or at least one of them may have been."

He said the three victims were known to police but he would not disclose how.

"It's an extremely disturbing incident at a well-organised, well-managed boxing event," he said.

"We made every effort to speak with every patron that was present at the scene and you can imagine it was packed to capacity.

"We managed to speak with the majority of people, however if there were any people that were there that we missed we'd like them to come forward."

Underworld figure Mick Gatto, who was also a boxing promoter, was part of the large crowd at the tournament.