Homicide squad detectives are investigating after a man was shot dead while walking down a Melbourne street.

Victoria Police were called to Almeida Crescent at South Yarra, close to nightlife on popular Chapel Street, about 11.40pm on Friday after reports a number of shots were fired at a man.

The man, who is yet to be formally identified, sustained life-threatening injuries and later died in hospital.

Detectives are yet to determine the circumstances but believe the shooting was targeted.

Officers cordoned off the area and set up a crime scene.

Source: AAP