Mother and daughter killed in stabbing and police shooting in Melbourne

A mother and daughter have died after a stabbing developed into a police shooting in Melbourne's northeast. 

Police were called to a Kett Street address after initial reports were made of a woman, 26, attempting to set another 52-year-old woman on fire about 6.30pm yesterday.

Arriving on the scene, officers were confronted with a woman "stabbing her mother" with officers left with "no choice" but to shoot her, Victoria Police Acting Superintendent Scott Colson said today.

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"Police called on the daughter to drop the knife, however she continued to stab the mother and the members and what I understand was that they had no other choice but to shoot her", Colson said.

Acting Superintendent Scott Colson said that only one shot was fired by officers.

He said officers were "confronted with a terrible dilemma and they've acted absolutely appropriately in their training and within the guidelines."

"And for that they have my full support along with the broader organisation."

"Unfortunately, and tragically, both the mother and the daughter died."

The daughter, believed to be 26-years-old, died as result of the single police shot.

Paramedics worked to save the mother, in her early 50s, but she also died at the scene, succumbing to knife wounds to her chest.

Police said they were not looking for anyone else in relation to the tragedy.

Homicide detectives will investigate with the oversight of the Professional Standards Command, as per protocol when a police firearm is discharged.

Police said the younger woman was on bail for an unrelated matter when the stabbing took place.

The officers who responded to the stabbing will take time off work in the wake of the violent tragedy.