La Trobe Street closed as police negotiate with man carrying 'meat cleaver'.

Tactical police officers have arrived at the scene in Melbourne’s CBD where a man apparently wielding a meat cleaver is holed up in a first-floor restaurant.

The man is behaving erratically; smashing windows, throwing glass, a smartphone and an apple to the ground outside the business near the corner of Queen and La Trobe Street.

He has a bloodied hand and has also been seen pushing over furniture.

The man can be seen lying by the window and regularly sitting up to yell down on to the street.

Police believe the man was involved in a dispute at the business at about 12:50pm.

Parts of La Trobe Street have been blocked off as police negotiate with him.

People have been evacuated from the building and traffic diversions are in place, police said.

“He is reportedly armed with an edged weapon but not making any threats towards police or members of the public,” Victoria Police said in a statement.

The Victoria Police Critical Incident Response team is on standby at the scene and paramedics have also arrived.

Tram services along La Trobe Street have been disrupted.

More to come.

This post originally appeared on ABC News.

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