Police later said the man had died as a witness spoke of seeing a man in Streatham "with a machete and silver canisters on his chest".
"We can confirm that the man shot by police at around 2pm today in #Streatham High Road has been pronounced dead," London's Metropolitan Police said on Twitter.
"The circumstances are being assessed; the incident has been declared as terrorist-related."
#INCIDENT 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. Please follow @metpoliceuk for updates
Metropolitan Police (@metpoliceuk) February 2, 2020
The force added: "We believe there are two injured victims. We await updates on their conditions."
On its twitter account, it is asking people to check-in periodically for any updates.
Eyewitness
Gulled Bulhan, a 19-year-old student, told Britain's domestic Press Association news agency that he saw the dramatic events unfold.
"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," he said.
#UPDATE: Video of London @metpoliceuk responding to the terrorism-related incident. Attacker shot dead and several people are reportedly stabbed. No claim of responsibility has been made. #terrorism #London @TheWarMonitor @jihadi_threat @Natsecjeff pic.twitter.com/i1VsybIOmd
intelfeedia (@intelfeedia) February 2, 2020
"The man was then shot. I think I heard three gun shots but I can't quite remember."
Bulhan added he then sheltered in a library as other passers-by ran into nearby stores.
Stay alert
The force urged people to avoid the area while the emergency services were responding.
London's Ambulance Service said it had "a number of resources" attending the incident on Streatham High Road in the largely residential neighbourhood.
Unverified footage posted to social media purporting to capture some of the incident showed armed police officers surrounding a man lying on the ground on Streatham High Road.
They then abruptly moved away, urging onlookers to move back, as other emergency vehicles arrived at the scene.
Britain has seen a spate of terrorist attacks in recent years.
In the most recent incident on November 29, 2019, convicted terrorist Usman Khan killed two people before being shot dead by police on London Bridge.
(AFP)
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