Most of the Occupy Melbourne protesters resisted police and several officers dragged them out of the protest area that had been set up last Saturday.
Some of the protesters screamed and cried as they were removed.
A small number walked from the site peacefully.
Most of the protesters were moved outside the fence surrounding the city square.
It is unclear whether any have been arrested.
It took about ten minutes to clear all the protesters from the site and a large police contingent is now occupying the area.
A large crowd gathered around the city square and watched events unfold.
Hundreds more protesters have occupied Swanston St, preventing trams and cars from moving through the city centre.
The protesters had been told to leave by 9am (AEDT).
Earlier, riot police using protective shields moved in on protesters and officers deconstructed the camp site, destroying tents and putting belongings into a van.
The tents had been pitched since Saturday as part of the world-wide movement that began as Occupy Wall Street in New York.
Occupy Melbourne spokesman Jacob Grech earlier said protesters had remained peaceful and they were determined to stay put.
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