By Liam Mannix and Anna Prytz
An armed man who held police at bay for more than an hour in Melbourne's CBD has been arrested.
The man exited the building in La Trobe Street just after 3pm, holding his hands above his head as police approached.
After receiving treatment for shallow cuts to his hands, he was escorted by police to a waiting ambulance.
Heavily armed police surrounded the Little Ipoh restaurant shortly before 2pm.
Officers negotiated with the man, who was brandishing what appeared to be a large machete or meat cleaver, and refused to leave the building's second floor.
The man, aged in his late 20s, used the weapon to smash two windows, injuring his hand.
At times, he dangled his legs out the window. He has also asked for his mother.
Just after 2.15pm, the man picked up a large pane of glass from a shattered window and threw it at police.
At 2.30pm, he put on sunglasses and lay down, making a 'V' symbol to crowds outside.
He then held his mobile phone out the window and appeared to take a photo of the scene.
Acting Senior Sergeant Adam Tanner said the man entered the shop at midday, when no customers were present.
Staff quickly fled the scene and the man caused a large amount of damage.
Acting Senior Sergeant Tanner refused to comment on the man's motive, and said the matter was being treated as a mental health issue.
"He appeared to be suffering some form of mental health episode," he said.
No one was injured during the siege, other than the man who suffered "superficial" injuries, acting Senior Sergeant Tanner said.
The man reportedly had a dispute with a business in the building, which is between Queen and Elizabeth streets.
However, police said they were not aware of a link between the man and the premises. Their investigation is ongoing.
Victoria Police confirmed the man was armed with an "edged weapon".
He did not make threats to the public or police and did not have any link to the Little Ipoh cafe.
A number of people were evacuated from the building.
Traffic and public transport were diverted during the siege. Trams have now returned to normal.
For help or information call Lifeline on 131 114 or beyondblue on 1300 224 636.