A man who allegedly drove a car into crowds at a busy Melbourne intersection killing an elderly grandfather and injuring 17 others has been charged with murder.

Police said in a statement on Tuesday, the accused driver, 32-year-old Saeed Noori, who was already charged with 18 counts of attempted murder and one count of conduct endangering life, has had one of those charges upgraded to murder following the death of an 83-year-old Northcote man.

Antonios (Anton) Crocaris, 83, died about 11.30pm on Friday, eight days after becoming one of 18 pedestrians hit by a car that drove down the Flinders Street tram tracks in Melbourne, hitting pedestrians at Elizabeth Street.

The additional murder charge was filed on Tuesday at the Melbourne Magistrate's Court.