A woman and a man have been rushed to hospital after being shot by police at a Melbourne nightclub.
Police said the man was shot inside the King Street nightclub while attending a Saints and Sinners fancy dress party when he "pulled out a handgun" in an upstairs room about 3am on Saturday.
Officers fired at the man, hitting him in the torso. He is now under guard in hospital, police said.
A woman at the nightclub was also shot and was taken to hospital suffering a non-life threatening injury to her leg.
In a statement, nightclub owner Martha Tsamis said police overreacted to an anonymous phone call about an alleged firearm after security expressed they weren't concerned and could handle the situation.
Venue staff have stated the male victim was in "a compromising position" with his female partner and not holding anything in his hand.
Ms Tsamis added that all outfits and accessories are checked by security as a condition of entry into the venue.
Armed Crime Squad detectives and the Professional Standards Command are investigating the shooting as per standard protocol when there has been a police shooting.
Macquarie Radio reports that the wounded man was at a costume party inside the club when the shooting took place.
A police spokeswoman told reporters that officers did not know if the gun pointed at them was real or fake at the time of the shooting.
"When the firearm was leveled at police and police asked the man to drop it and he didn't, police at that stage were not aware whether it was an imitation or a real firearm," she said.
Damon Oppatt, 26, told Fairfax Media he saw a heavy police presence on King Street.
"The shooting happened before I went to Clique. The street was blocked so I had to divert," Mr Oppatt told Fairfax.
"There were a lot of police and a lot of flashing lights. I would say there were close to 50 police."
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