AKIPRESS.COM - Australian police shot dead a teenager after he stabbed two counter terrorism officers, days after sweeping raids involving hundreds of police thwarted what they said was an imminent plot to behead a member of the public, reports Reuters.

Australia, a staunch ally of the United States and its escalating action against the Islamic State in Syria and Iraq, is on high alert for attacks by home-grown militants returning from fighting in the Middle East.

Security has been tightened at public places, including Parliament House in Canberra where police are armed with assault rifles, and at major sports events.

The 18-year-old, named in parliament as Abdul Numan Haider, was asked to attend a police station in the southern state of Victoria on Tuesday night because his behaviour was "causing concern", police said.

"This was a planned and agreed meeting that was to occur at the Endeavour Hills police station. When these two police officers approached him, they were stabbed, one very seriously," Victoria Police Chief Commissioner Ken Lay told reporters on Wednesday.

"One of the injured police discharged his firearm, fatally wounding the 18-year-old."