A man has been charged after allegedly carrying a fake gun and pointing it at shoppers outside a Melbourne shopping centre.

The 30-year-old man, dressed in an all-white hooded outfit, was spotted with what appeared to be a firearm on McRae Street outside Dandenong Plaza about 11am on Tuesday.

WATCH THE VIDEO ABOVE: Man bailed after fake gun incident at Dandenong Plaza

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Video footage from the scene appears to show him raising and pointing the weapon.

Police attended and arrested the man, who does not have a fixed address.

He was searched and an imitation firearm was allegedly located, police said.

A man has been charged after allegedly carrying a fake gun in Melbourne. Credit: 7NEWS

The man was charged with possessing an imitation firearm as a prohibited person and bailed to appear in court at a later date.

A Victoria Police spokesperson said officers have stepped up patrols in the area to reassure the community.