Police confirmed four people had been transported to hospital.
A 28-year-old man remains in a critical condition. A 50-year-old man and a 29-year-old man both sustained non-life threatening injuries.
A 28-year-old man remains in a critical condition. A 50-year-old man and a 29-year-old man both sustained non-life threatening injuries.
Detective Inspector Andrew Stamper, from Victoria's Homicide Squad, confirmed three of the people struck were employees and one person was a patron "innocently waiting to get in.
"Those gunshot wounds were from a fairly close proximity ... so, you know ... horrific injuries."
A security guard suffered a gunshot wound to the face in what was believed to be a drive-by shooting outside the nightclub, which had promised a Saturday night of "old school grooves", according to its Facebook page.
Authorities are yet unclear if the shooting was a targeted attack, with Victoria Police Inspector Andrew Stamper telling media: "It is still an active crime scene. There is a lot of questions we don't know at the moment. We are working through that.
"It would appear that shots have been discharged from a car in this area into a crowd that was standing outside the nightclub.
"This is just a horrendous act. It's a busy nightclub, one of the main nightclubs in Melbourne in one of the main entertainment precincts in Melbourne."
Stamper stressed that there was "nothing to indicate" that the shooting was part of a "broader agenda".
Social media posts payed tribute to Osmani, who was "the most kind hearted soul I have met since I started working at Love Machine".
"The most humble security guard I have ever had the pleasure to call a friend, my heart is broken. I love you bro," posted a friend.
Another wrote: "You did not deserve to go like this" while another described the man as "the nicest guard I know".
Love Machine host Steve Yousif posted on Facebook: "Overwhelmed with all your calls and texts, nothing but love for you all.
"What happened last night was uncalled for and devastating. For some of you it was a night out, the rest of the Love Machine family lost a beautiful soul today.
"No words, stay safe."
Bloodstained clothing left in the middle of the road outside the club, alongside bullet casings, seemed to be the focus of detectives at the scene.
Forensic police scoured the area swabbing and bagging any items of clothing they found in the area. Officers are photographing gutters and drains outside the nightclub as they continue searching for clues.
No arrests have been made and the gunman is still on the run.
Pat Mitchell, a police reporter for 3AW, tweeted that the footpath on Chapel St had been closed due to the trail of blood from the shot security guard.
The shooting took place in what was believed to be a stolen Porsche Cayenne, which was later found burnt out in the suburb Wollert, about 50kms north of the crime scene.
Links to an outlaw motorcycle gang are being investigated by detectives who believe the gang has made extortion attempts on the nightclub, the publication said.
One of the injured people ran to a nearby Chapel St business to seek help. Seven's Sunday Sunrise spoke with a security guard at the club who said he had no idea there had been a shooting outside and there was no panic inside the venue, which was still operating.
A witness on social media said they are "in shock" after seeing a shooting "right in front of us ... while we were standing across the road".
"Please if anyone is out at clubs please go home now. We are all in shock but we are all okay."
People are being told to avoid the area while police are urging anyone with video footage of the incident or information to contact them.
Police did not give any more details including the condition of the victims.
"The exact circumstances are still being established," the police said.
Sarah Guest, who lives a block away from the crime scene, said she isn't shocked about last night's events given the mass drug use in the area.
"I'm not super surprised ... walking to work one day I reckon I saw ten to 15 syringes in the gutter," she told The Age.
Edie, who lives in the nearby commission flats, told the Herald Sun: "There is a bit of trouble around here, but it's usually fighting and stabbings.
"It's scary because it's right on your doorstep - it could have happened to one of us."
Edie first heard about the shooting on the morning news and called on tougher gun laws.
"I think they should be stricter on the gun laws," she told reporters on scene.
The shooting occurred just days after The Shooting Industry Foundation of Australia called for gun leadership from every candidate in Australia's upcoming federal election.
Executive officer Rod Drew says the time has come for every candidate to show commitment to Australian community safety and says the organisation's aim is to get illegal guns out of their electorates.
"Australian voters care about safety, but the reality is that we have many thousands of illegal guns in the hands of criminals all over the country," he says.
"Australians deserve Members of Parliament and Senators who have a genuine, informed plan to get illegal guns out of our communities."
