Fire crews have turned their hose on a man who was allegedly threatening them with an axe and set a fire truck alight in Melbourne's north overnight.

Police allege the 25-year-old man had set fire to three cars and a vacant home on Papworth Place, Meadow Heights, just after 10:30pm.

When firefighters arrived on scene, the man allegedly threatened them with an axe, they said.

Crews then turned a hose on the man in self-defence.

Police said the man continued to threaten the crew, forcing them to move away from their truck, which he then set fire to.

He then moved down the street and threatened two other people with the axe and stealing their wallets.

A dog squad tracked him down and he was arrested.

The man from Tarneit sustained bite wounds and is now under guard in hospital.

The cars were almost completely burnt out, while damage to the fire truck was moderate.