The chilling moment two balaclava-clad thugs unleash a firebomb attack outside a Yarraville home — torching two cars in a horrifying $20m extortion plot linked to the notorious Bandidos bikie gang — has been caught on CCTV.

Newly released footage shows two men in black balaclavas, grey hoodies, trackpants and black trainers emerging from a grey Toyota RAV4 dumped in the middle of Stephen St just after 2.20am on November 26.

They then scale a driveway fence armed with jerry cans of accelerant.

In a terrifying few seconds caught on camera, one man smashes a hammer through a car window while his accomplice hurls two molotov cocktails, sending flames roaring through two SUVs parked metres from the front door.

The firebombing followed a threat a month earlier, on October 29 about 2.20am, when a 47-year-old male resident was confronted at his home by gang members demanding $20m by the end of the week.

The resident was told his property would be burnt down if he did not pay.

The three patched Bandidos members allegedly punched and slapped the man while a woman and a young child were inside the house.

Three men – a 27-year-old from Kalkallo, a 23-year-old from Ivanhoe and a 28-year-old from Craigieburn – were charged in November in relation to that initial threat and later sentenced.

A 23-year-old Thomastown man and a 27-year-old Mickleham man were arrested in relation to the firebombing on December 10, but were released pending further investigation.

Police released the latest CCTV footage in an effort to identify the offenders.

Detective Senior Sergeant Ben Oakley said the attack put innocent lives at risk.

“We have said time and time again that fire – arson – risks the lives of innocent people. It is dangerous and unpredictable,” Sergeant Oakley said.

“A woman and a young child were inside this address – in their home, where everyone deserves to feel, and be, safe.

“If you have any further information on this incident, including who the men may be, it is time to do the right thing and come forward.

Anyone with information or who recognises the men in the CCTV is urged to contact Crime Stoppers on 1800 333 000 or submit a confidential report at crimestoppersvic.com.au.