A white SUV was driven deliberately into a crowd of pedestrians on a busy intersection at 4.30pm local time resulting in injury to 14 people.
Despite several England players and support staff being in and around the city on a day off for the squad, none were caught up in the chaos.
“Following the Flinders Street incident in Melbourne, all players and management have been accounted for and are safe,” said an ECB spokesman.
England are preparing for the fourth Ashes Test after seeing Australia regain the urn after just three Tests.
But the chaos in Melbourne will disrupt preparations for both sides ahead of the Boxing Day Test match.
Witnesses said the white Suzuki SUV showed no signs of slowing as it mowed down crowds of people at the busy intersection near the corner of Flinders and Elizabeth streets.
One woman who saw the harrowing incident unfold said she heard screams before she saw “people flying everywhere”.
She added: “We could hear this noise, as we looked left, we saw this white car, it just mowed everybody down.
“People are flying everywhere. We heard thump, thump. People are running everywhere.”
At least 13 people have been transferred to hospital with injuries but local media is reporting at least 19 people have been hurt in the crash. Seven are in a critical condition.
Commander Russell Barrett from Victoria Police said that officers believe it was a deliberate act but added that “we do not know the motivation and it is still in the early stages of an investigation.”