A man has been arrested for allegedly planning a terror attack in Melbourne on New Year’s Eve.

The Werribee man, 20, was arrested in Werribee by members of the Victoria Police Special Operations Group just before 3pm yesterday.

Police say the man was on a terror watch list.

They allege he tried — though failed — to obtain a gun to execute a mass shooting.

“We will allege he would use a firearm to shoot and kill as many people as he could in the Federation Square area on New Year’s Eve.”

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Warrants were also executed at two other houses in Werribee and Meadow Heights, as well as a commercial property in Footscray.

No further arrests are expected.

The man, an Australian citizen with Somalian parents, is being interviewed in relation to the offences of Acts in Preparation to Commit a Terrorist Attack and Collecting Documents to Facilitate a Terrorist Act, contrary to the Commonwealth Criminal Code Act.

“Victoria Police and the Australian Federal Police would like to reassure the community that the threat has been contained and there is no on-going risk posed by this individual,” a Victoria Police station read.