A manhunt is underway after a man was shot dead inside his home, with his wife and children returning to the property soon after the killing.

Ali Albadri, 42, was shot multiple times at his home on Gypsum Dr in Wollert, in Melbourne’s outer north, about 5.30pm on Thursday.

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7NEWS understands the shooting was a gangland execution.

Victoria Police Detective Acting Inspector Paul Scarlett said Albadri was alone at home when the shooting occurred.

His wife and children returned to the property soon afterwards and were “absolutely distraught”, Scarlett said.

A man has been gunned down in his family home in Melbourne. Credit: 7NEWS

It is understood the alleged gunmen had been waiting across the road before the attack.

Two young men who happened to be walking past startled the armed offenders as they prepared to strike.

The pair fled, fearing for their lives, before the gunmen broke into Albadri’s home and shot him multiple times in what police believe was a targeted attack.

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Scarlett said Albadri was known to police and had links to organised crime extending beyond Victoria.

No arrests have been made and police are now appealing for information as those responsible remain on the run.

The man’s family returned home soon after the killing. Credit: 7NEWS

Scarlett described the shooting as “abhorrent”, saying it had shaken a community of young families.

“Wollert is a close-knit community. This is obviously an area full of young families who just want to live inside their home, live in peace and feel safe inside their home,” he said. 

“The home that we’re talking about was a family home and yesterday a man was shot to death at that address.

“This sort of criminal activity is just abhorrent and the homicide squad will do all that we can to bring that person or those people before the courts and have them held to account.”

Anyone with information is urged to contact Crime Stoppers on 1800 333 000.