POLICE have set up a crime scene at a popular Melbourne nightclub believing a man who shot three people in the centre of Melbourne this morning was involved in an argument outside the venue.
Detective Inspector Stephen Clark from the homicide squad said witnesses have told police there was an altercation in the King Street nightclub area 10 minutes before the shooting.
According to another police spokesperson a woman was punched in the face at the nightclub. She has spoken to police before being taken to Royal Melbourne Hospital.
Insp Clark said police were yet to establish what sparked the initial dispute.
"It appears there has been an initial assault that has taken place in King Street in the nightclub area," Det Insp Clark said.
"Shortly afterwards we have had three people shot here - one male who is deceased, we have another male and a female who have been taken to hospital, they are currently in surgery and their condition is not known."
Det Insp Clark said a black coat believed to belong to the gunman had been found along with the handgun.
"We've located a firearm, a handgun, in the near vicinity and a dark coloured jacket. Whilst we can't confirm it was the same firearm used in the shooting, it's the same calibre," he said.
"We are reasonably confident it is the same gun used."