A knife-wielding man who threatened people and police has been shot dead by officers in a "traumatic" incident in a major city's CBD.
Police tried to negotiate with the man in Launceston in Tasmania after a member of the public raised the alarm around 10am on Tuesday.
When he ignored repeated directions to drop the knife, police used capsicum spray.
Tasmania Police Assistant Commissioner Adrian Bodnar said the man kept advancing towards officers, who fired several shots which hit him in the chest twice.
He was given first aid at the scene and taken in a critical condition to the Launceston General Hospital where he died.
Mr Bodnar said the officers implemented their training, which involved shooting the "largest mass" to stop the threat, after doing their best to negotiate.
"As the threats continued towards our police officers they used a less-than-lethal option trying to diffuse the situation. For whatever reason that hasn't worked," he told reporters.
"They've (then) resulted in lethal force. Lethal force for a police officer is a very last option. This is not an outcome we want to see."
A police professional standards investigation is underway and the coroner will investigate the incident, while the man's next of kin were being notified.
One officer was taken to hospital with non-life-threatening injuries after being hit with a bullet.
The man, who was known to police, initially threatened people at a business and then on a street but it is not known whether drugs or alcohol were involved, Mr Bodnar said.
"This is a traumatic incident and it is certainly a tragic outcome ... and our thoughts are with everyone involved." he said.
"It is a very difficult time for our police officers and their families and we have some support plans in place for those members."
A crime scene was established at St John Street where the man was shot.
