Search warrants are being executed on two homes in Melbourne’s west, after yesterday’s Bourke Street terror attack .

A strong police presence is at both properties in Werribee and Meadow Heights.

9NEWS can confirm forensics is also on the scene.

Search warrants are being executed at Werribee and Meadow Heights. (AAP)

Search warrants are being executed at Werribee and Meadow Heights. (AAP)

It’s unclear if there are any residents inside.

Hassan Khalif Shire Ali was shot dead by police after carrying out a confirmed terror attack yesterday, killing one and injuring two.

More to come.

The raids are linked to yesterday's terror attack. (AAP)

BOURKE STREET ATTACK: What we know

- Police responded to reports of a vehicle on fire in Melbourne's CBD about 4.10pm on Friday. The utility was found alight on the corner of Bourke and Swanston streets, a busy shopping area in the heart of the city.

- Officers were confronted by a man brandishing a knife and making threats. Passers-by told them three members of the public had been stabbed. The offender was shot by police and later died.

- A 74-year-old pedestrian later died at the scene

- Two other victims a 26-year-old and 58-year-old are in hospital, both have undergone surgery and are in stable conditions.

- The terrorist has been named as 30-year-old Somali-born Hassan Khalif Shire Ali.

- Islamic State has claimed responsibility for the attack.

- Counter terrorism officers are raiding two addresses in Werribee and Meadow Heights.