A man armed with knives has been shot by police after allegedly assaulting an elderly man with a sword in Melbourne's south-east last night.

Police were investigating the serious assault in Endeavour Hills when a pursuit was initiated about 9pm after a yellow Hyundai believed to be connected to the attack was sighted several times in surrounding suburbs.

Police deployed stop sticks to bring the vehicle to a halt in Pakenham Upper and officers approached the driver.

A police shooting has occurred in Melbourne's south-east. (Nine)

The driver, believed to be a man in his 30s, got out of the car and threatened police while armed with knives.

Officers discharged a firearm and the man suffered a gunshot wound to his leg.

Acting Superintendent Mark Langhorn said police had "no choice" but to fire the weapon.

"The male that's been shot by police was involved in a family violence incident," he said.

"He's broken into a house and assaulted an elderly gentleman with what we believe is a sword."

Acting Superintendent Mark Langhorn. (Nine)

The offender also suffered gashes to his head and was taken to The Alfred hospital for treatment.

The incident remains under investigation by the Armed Crime Taskforce and the Professional Standards Command, as per protocol when a police firearm is discharged.

In a separate incident, another police shooting occurred after an aggravated burglary in Oakleigh East last night.

Officers were called to Franklyn Street about 11pm following reports that six men armed with knives and a longarm firearm had forced their way into a home and assaulted two men in their twenties.

The offenders then fled the scene in two vehicles.

Police arrested a male passenger in the front of seat of a silver Holden Commodore after a police pursuit on North Road in Clayton.

The driver was shot at by police after refusing to comply with instructions.

He fled the scene and police were unable to find him.