A man has been shot dead by police on a busy London high street following a daytime stabbing attack involving multiple people.
London's Metropolitan Police declared the incident as "terrorist-related" and early reports suggested the attacker may have been wearing a possible explosive device.
The suspect has been named as Sudesh Amman, who was released from prison for terror offences just days ago.
The Met Police tonight said three people were injured in the attack with one person initially reported to be fighting for life.
The man, in his 40s, is no longer in a life-threatening condition. A woman, in her 50s, who was also stabbed has been released from hospital.
Investigators are treating the attack as "Islamic-related" while the suspect was under surveillance by anti-terror cops, it's been reported.
It was later confirmed the knifeman was wearing a hoax explosive device.
A second victim was treated for minor injuries at the scene before being taken to hospital. A third was taken to hospital but their condition is not life-threatening.
The shooting occurred in Streatham High Road at around 2.30pm and appears to have happened in front of a large crowd of people.
Eye-witnesses on Twitter have said a female “cyclist was stabbed in the back,” as well as another individual, although this has not been confirmed.
It is reported that a man attacked the cyclist with "a knife grabbed from a shop and police shot him".
In a statement on Twitter, the Metropolitan Police said: "A man has been shot by armed officers in #Streatham.
"At this stage it is believed a number of people have been stabbed.
"The circumstances are being assessed; the incident has been declared as terrorist-related".
Lambeth police have also confirmed that they are on scene and officers on the ground reportedly telling people to "get back for their safety.”
Over a dozen armed police were at the scene and footage shows two people being treated by doctors in body armour.
Eyewitness EJ Ward said on Twitter: "Streatham High Road where two people are being treated by doctors in body armour."
The area between Leonard Road and the Odeon is on lock down and all buses in Streatham are on diversion.
Businesses in the area were evacuated.
YouTuber and blogger Sabrina Chisin said she was "rushed out of a coffee shop" as "police deal with a stabbing incident".
One Twitter user said: "Be careful out today, I'm in London, just seen about two dozen armed police, a man shot and a two stab victims receiving urgent medical care."
The deputy manager of the White Lion on Streatham High Street told Mirror Online he spotted a man "blood-covered" lying outside the Cash Converters.
He told the publication he had heard a gunshot outside the pub followed by two more.
Prime Minister Boris Johnson praised the emergency services following the incident.
On Twitter, he wrote: "Thank you to all emergency services responding to the incident in Streatham, which the police have now declared as terrorism-related.
" My thoughts are with the injured and all those affected."
Sky News reports the suspect was under active surveillance by anti-terror police.
Nardos Mulugeta, 52, a mechanical engineer who lives in Streatham, said he heard gunshots before seeing one victim lying in the street.
He told PA: "I heard a shot and then there was a 20-second gap. Then there were three or four shots together.
"I went over and I saw the first victim, a male victim on the ground, near the White Lion Pub, and people were helping him.
"Then five minutes later a woman came over and said I've been stabbed too in the back. And then people starting helping her.
"I saw one body laying down further away. He was face-down between Argos and Iceland. It's really scary."
Graham Norton, from the London Ambulance Service said: "We were called at 1.58pm to reports of an incident at Streatham High Road.
"We worked closely with the other emergency services and sent a number of resources including five ambulance crews, an advanced paramedic practitioner, an incident response officer and a motorcycle responder, with the first of our medics arriving in four minutes. We also dispatched London's Air Ambulance.
"We treated three patients for injuries at the scene, and took all three people to hospital."