The man shot dead by police following a stabbing attack in London was a convicted terrorist who had recently been released from prison.
It is understood that Sudesh Amman, who was jailed for possessing and distributing terrorist documents in December 2018, had been freed in the past six weeks.
Two people were stabbed in the attack in Streatham in south London this afternoon which police believe to be "Islamist-related".
Scotland Yard said armed officers shot dead a man as part of a "proactive counter-terrorism operation" on Streatham High Road.
Three victims were taken to a south London hospital, with one man's condition said to be life-threatening and one woman being treated for non-life threatening injuries.
Police said a second woman received minor injuries believed to have been caused by glass following the discharge of a police firearm.
Sam Armstrong, from the Henry Jackson Society, said Amman was thought to have been staying in a bail hostel.
He said the society had warned in December that Amman was due for release within the next two months and should not be let out of prison.
Amman, who at the time of his sentencing was 18 years old and had an address in Harrow, north-west London, had been jailed for three years and four months.
A device found strapped to the body of the suspect was a hoax, the Metropolitan Police added in a statement.
It said: "The situation has been contained and officers from the Met's Counter Terrorism Command are now leading an investigation into the incident.
"The incident was quickly declared as a terrorist incident and we believe it to be Islamist-related."
A 19-year-old student from Streatham, who did not want to be named, said: "I was crossing the road when I saw a man with a machete and silver canisters on his chest being chased by what I assume was an undercover police officer, as they were in civilian clothing.
"The man was then shot. I think I heard three gun shots but I can't quite remember.
"After that, I ran into the library to get to safety.
"From the library, I saw a load of ambulances and armed police officers arrive on the scene."
This evening, forensics officers could be seen near shops on the road examining the area for clues.
Families could be heard asking police how they would be able to access their homes in light of the incident.
British Prime Minister Boris Johnson said he will announce plans tomorrow for "fundamental changes to the system for dealing with those convicted of terrorism offences" following the attack.
He added: "Following the awful events at Fishmongers' Hall in December, we have moved quickly to introduce a package of measures to strengthen every element of our response to terrorism - including longer prison sentences and more money for the police."
In a statement, London Mayor Sadiq Khan praised the emergency services as "the best of us", adding: "Terrorists seek to divide us and to destroy our way of life - here in London we will never let them succeed."
The London Ambulance Service said the first medics arrived at the scene of the attack four minutes after being called just before 2pm.
The British Red Cross said it was ready to make the UK Solidarity Fund available to those affected by the attack.
The fund was set up in 2017 following the attacks in Manchester and London and offers financial support to victims of terror attacks in need anywhere in the UK.
