A family dog has been shot in targeted attack in Melton South

A dog has been killed in a 'targeted' shooting in Melbourne's west.

Neighbours have told 9NEWS they heard three gunshots at around 2.20am coming from the back of a six-unit block on Toolern Street, Melton South.

Three people were inside the home at the time according to police. None were injured, but the family dog was fatally wounded.

Bullet holes can be seen in the back window of a Hyundai Getz parked outside.

Victoria police have described the incident as an "altercation" and a "targeted attack" with "some link between the offenders and victims" who "are known to police."

Investigating officer Stephen O'Connell conceded that an "unknown" number of offenders fled in a white vehicle.

Two people, a man and a woman emerged from the unit this morning, announcing "we're fine" and "my dog's been killed" as they sprinted away from media to a waiting car.

The same man was spoken to by police in the back of a divisional van in the aftermath of the shooting.

Ballistic and forensic detectives have since arrived on scene.

Stephen, who lives in the unit next door, heard "a number of loud bangs" but described his neighbours as "friendly."

As the attack was targeted, detectives say there's no threat to the community.

 Anyone with information is urged to contact Crimestoppers.