A knife-wielding teen was arrested at a Melbourne shopping centre early this morning after allegedly being involved in a dispute.

Police believe the 16-year-old boy was involved in an argument with another group in Jamieson Street, next to Southland Shopping Centre in Cheltenham about 7am.

The knife-wielding teenager then ran from the scene into a store at the shopping centre.

Police were hot on the boy's tail and he was quickly arrested inside the store.

He has been released from police custody.

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