The man was arrested outside St Mary’s Anglican Church on Queensberry Street at about 2:30pm on Friday afternoon.
The Joint Counter Terrorism Team confirmed an operation was underway but that there was no immediate threat to the public.
“JCTT Melbourne can confirm it is conducting operational activity in North Melbourne today,” a Victoria Police spokesman said.
“There is no current or impending threat to the community. It would not be appropriate to comment further at this time.”
Footage from Nine and Seven News showed the man being led away by officers.
It comes after the sister of one of the suicide bombers behind the Easter Sunday attacks in Sri Lanka that killed more than 250 people alleged her brother had been radicalised while studying in Australia.
More to come.
Sri Lankan suicide bombers had links to Australia0:46
Sri Lankan authorities have revealed one of the suicide bombers had links to Australia.