Police say they have arrested a 17-year-old suspected terrorist and disrupted a plot to detonate three homemade bombs in the Australian city of Melbourne.

Australian Federal Police Deputy Commissioner Mike Phelan said on Saturday the teen was arrested on Friday afternoon at his home in the upmarket suburb of Greenvale where the explosive devises were found. The bomb squad destroyed the bombs.

The suspect will appear in the Melbourne Children's Court on Monday on terrorism charges. His identity cannot be revealed for legal reasons.

Phelan says there is no further threat from the suspect or his colleagues to the people of Melbourne.

Police did not know when or where the bombs were to be detonated, but say the plot was to be executed soon.