A man has been shot dead by police after threatening a woman and stabbing another man on the street in Queensland .

Police were called out at 3.42 am overnight after reports a man had stabbed another man at the intersection of Beerburrum Road and Commercial Drive, Caboolture, in the City of Moreton Bay.

The knifeman then fled on foot.

A short time later, police say, officers found the man as he was threatening a female member of the public on Margaret Street.

An officer fired their gun and struck the man. He died at the scene.

The woman was not physically hurt.

A man with a stab wound to the neck was taken to hospital in a serious condition.

An investigation into the shooting is underway with oversight from the Crime and Corruption Commission.

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