A man and a woman have been shot by police during a fancy dress swingers ball at a Melbourne nightclub when a "fake gun" was allegedly aimed at officers.
But the owner of Inflation nightclub says the man wasn't holding a gun and was in a "compromising position" with a woman when police "stormed in" and opened fire.
The partygoers suffered gunshot wounds in the incident at the King Street nightclub about 3.30am on Saturday.
The club was hosting a raunchy Saints and Sinners Ball, described on its website as a "no holds barred extravaganza of adult fun".
Police say they arrived at the ball after receiving a number of reports that a man had a gun at the venue.