Terrified shoppers have barricaded themselves inside stores after a man armed with a large knife was spotted inside a busy mall. 

A shopper captured footage of a man holding a large knife with a red handle inside Forest Hill Shopping Centre in east Melbourne on Thursday. 

The man reportedly threatened shoppers, including mothers with children, 3AW radio host Jacqui Felgate wrote on social media. 

Victoria Police officers were seen speaking to the man as he sat slumped on the floor of the shopping centre with his arms behind his back. 

One of the officers was seen holding the knife while wearing blue gloves.

Local man Lou told 3AW radio the man had been ‘pacing up and down’. 

‘There’s a gentleman outside the Coles supermarket with headphones on that was pacing up and down near the escalators with a knife,’ he said.  

‘The police have arrived, I think there’s four police cars in attendance. When I left, the police had already arrived and should have him by now. 

Footage of a man holding a large knife with a red handle was captured by a shopper inside Forest Hill Shopping Centre in east Melbourne on Thursday (pictured)

Victoria Police officers were seen speaking to the man as he sat slumped on the floor of the shopping centre with his arms behind his back (pictured)

Shoppers barricaded themselves inside stores after spotting the man armed with a knife

‘It looked like a butcher’s boning knife, about eight inches long.’

The Daily Mail has contacted Victoria Police for comment. 

Aussies were quick to share their thoughts on the footage. 

‘Melbourne… once the greatest city in the world,’ one said. 

‘And Jacinta [Allan] claims Victoria is “SAFE”,’ a second wrote. 

‘If you are confronted with knives or machetes whilst doing a grocery shop – the states got a huge fricken problem. Vote her OUT!’

 ‘I was just there buying a bahn mi, nearly fell to my knees,’ a third claimed. 

More to come.