A naked man has been shot by police after he pulled a knife on officers who were called to a Melbourne home over family violence.

Police say officers were called to the Mulgrave home about 7.30am on Monday.

They tried to arrest the man, who was naked, in a car revving loudly and driving erratically, assistant commissioner Glenn Weir said.

Seven police officers confronted the man 24-year-old, believed to be from NSW. After pepper-spraying him, he was then shot in the body at close range.

He has been taken to hospital in a critical condition under police guard.

“At least two of the members have discharged their firearms. We’re still working out the exact details,” Mr Weir said.

“Given the briefing that I’ve had, I find it very hard to believe that police had any other option.”

Police were called over reports a woman had been assaulted.

A 50-year-old Mulgrave woman at the scene was treated for minor lacerations, while no police were injured.

Investigators will look at whether drugs and alcohol were a factor.

Officers recorded footage on their body-worn cameras as well, Mr Weir said.

A neighbour who called police said he heard two gunshots.

“It was so scary,” Andrew told Melbourne radio station 3AW.

“I could feel myself sweating. I’ve never been involved in anything like it.”

Andrew called police after hearing terrified shouting.

“I heard a male voice screaming at the top of his head, but I couldn’t understand it because it was a different nationality,” he said.

“About two minutes later I heard a woman screaming saying ‘Don’t! Don’t! Leave it! Leave it! Leave it!’.”

Anyone with information about the incident is urged to contact Crime Stoppers.

1800 RESPECT (1800 737 732)

Lifeline 131 114

-with AAP