A GUNMAN was on the run in Melbourne's eastern suburbs on Tuesday night after an armed robbery in Croydon.
Police were hunting the man, who is believed to have robbed a gaming venue with a partner on Dorset Road about 10am on Tuesday.
The pair, who were both armed and wearing disguises, stole cash and were leaving the Dorset Gardens venue when police arrived.
Police recovered a firearm on Mount Dandenong Road about 3.15pm on Tuesday. It is believed the weapon may be linked to the armed robbery. Earlier, a car chase started and one of the offenders pointed a firearm at police while they were being pursued.
The offenders stopped their car and were chased on foot by police, who were again threatened with a firearm. One man was then arrested but the other fled.
A resident confronted the man with a baseball bat after he scaled his fence, but police could not confirm any other sightings.
No shots had been fired and the police and gaming venue patrons were unharmed.
Heavily armed police from the special operations group and the critical incident response team were involved in the manhunt. Superintendent Graeme Arthur said police were going door-to-door in the area, and he was confident a cordon was established quickly enough to have trapped the man, who was wearing a white hooded top and black tracksuit pants.
Police are analysing the gaming venue, the getaway car and the dumped clothing of one of the offenders. It is unclear how much cash was stolen or whether the man, described as ''extremely dangerous'', was still armed.
''He needs to be apprehended, he needs to be caught and we need public information to assist us in capturing him,'' Superintendent Arthur said. ''We're trying to ensure the offender has not left the area, we believe we had the area cordoned off fairly quickly so there was a good chance of actually apprehending him.
''He could lay low for a number of hours, so all we can do is do a house-to-house search of the area we've blocked off and hope for the best. The difficulty is that there's a number of people away on holidays, a number of people still at work, so we're concerned that someone might come home and find him in the yard.''
Superintendent Arthur said the arrested man was 20 years old, but could not confirm the suburb he was from or whether he had told police the identity of his accomplice.