Police have arrested a meat cleaver-wielding man who was acting erratically - smashing windows, yelling and throwing things at them from a Melbourne restaurant - after a tense standoff on Tuesday.

Heavily armed police from the Victoria Police Special Operations Group apprehended the man outside the Little Ipoh restaurant on La Trobe street after negotiations that went on for more than an hour, according to Yahoo.

The bloodied and shirtless man apparently charged police officers with the meat cleaver before they tried to subdue him using capsicum spray, after which, he escaped into restaurant and barricaded himself inside, according to The Australian.

Police were called to the restaurant at approximately 1 p.m. after the man entered the restaurant on the ground floor and started screaming. Staff and patrons fled outside and alerted the police.

The man then moved up to the restaurant on the first floor where he smashed several windows and started yelling and throwing things at the police from the window of the establishment. Parts of the street were blocked off as police personnel continued to negotiate with the individual.

The man's motives are unknown at this time.