A police officer who shot and killed a woman who rammed him with a car in South Melbourne has been released from hospital.

A police officer was pinned against a wall when a vehicle was driven toward him as he was making an arrest in South Melbourne shortly after 5 pm yesterday, according to police.

The arrested individual has been charged by police with weapons offenses, and the homicide squad, along with the Professional Standards Command, has started the necessary inquiry into the incident.

Police swarmed Dow Street in South Melbourne just after 5pm last night to initial reports of a man wielding a machete.

Witness Alan Nightingale said he heard the officer yelling out “get the car off me, get the car off me”.

Police reported that the senior constable discharged four bullets at the SUV, which had stolen license plates, resulting in the death of the 34-year-old female driver, while her male passenger sustained injuries.

The officer was taken to the Royal Melbourne Hospital with serious injuries

Acting Assistant Commissioner Therese Fitzgerald said the officer was “extremely lucky”.

“A vehicle being driven at a police member is incredibly dangerous, we are very fortunate as we said,” she said.

The 39-year-old arrested at the scene was taken to hospital and later charged with weapons offences.

“I got chased. Yeah, it was terrifying,” he said today.

Police said all three people involved knew one another. It’s understood they were residents at the nearby Park Towers.

Friends of the 34-year-old woman were paying their respects today.

One called her a “kind loving lady” who was “there for everyone”.

Wayne Gatt from Police Association Victoria said “when a car’s coming at you, there’s not a lot you can do it”.

“It is literally a case of do or die,” he said.

Despite yesterday’s incident the state government says it won’t bring forward its planned machete ban from September.