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A man has been killed in a machete attack and two suspects shot and wounded by police in Woolwich, south-east London, BBC reported. 

The Met Police said a murder inquiry was being led by its Counter Terrorism Command. Prime Minister David Cameron said the UK would "never buckle" in the face of terror attacks.

Footage has emerged showing a man wielding a bloodied meat cleaver and making political statements.

Police confirmed two men had been arrested in connection with the murder.

There are unconfirmed reports that the dead man was a soldier.

Both French President Francois Hollande and MP Nick Raynsford said the dead man had been a soldier at Woolwich barracks.

The footage shown on the ITV website shows a man, speaking to the camera, saying: "We must fight them as they fight us. An eye for an eye, a tooth for a tooth."

He added: "I apologise that women have had to witness this today, but in our land our women have to see the same. You people will never be safe. Remove your government, they don't care about you."