A police statement on Saturday said that officers were quick to respond after hearing gunshots in the suburb of Fitzroy, which neighbors Melbourne's central business district (CBD), shortly after midnight, Xinhua reported.
Officers arrived at the scene and located a man with life-threatening injuries.
The man, who has not yet been formally identified, was treated by emergency services personnel but died at the scene.
The incident occurred near an intersection that is around 100 meters from the Fitzroy Police Station.
The police statement said that a vehicle fled the scene before the arrival of first responders.
As of 8 a.m. local time on Saturday, no arrests had been made and an investigation into the incident was ongoing.