A man believed to be a serving soldier is dead and two people have been shot following what was allegedly a terrorist attack in Woolwich, south east London .

Sky News reports that David Cameron has called for a meeting of the Government’s Cobra emergency committee after the incident which the Prime Minister descried as “truly shocking.”

According to sources, senior police officers believe that the killing of the man is likely to be a politically-motivated terrorist attack.

Eye-witnesses to the fatal attack say that two men tried to hit the victim with their car before they got out of the vehical and attacked the victim with knives and a machaete.  The two men then allegedly started to chant “Allahu akbar” and asked passers-by to take photographs of them.

The following video of the attack has surfaced online. Viewer discretion is advised.

When police arrived at the scene, witnesses say that the two men were shot. They were both taken to hospital with gunshot wounds.

The Metropolitan Police have confirmed that one person has died following the incident and the Independent Police Complaints Commission has now taken over the investigation.

Officers were called to the area at 2.20pm this afternoon.

“One man was being assaulted by two other men. A number of weapons were reportedly being used in the attack, and this included reports of a firearm,” said Commander Simon Letchford from the Metropolitan Police.

“Two men, who we believe from early reports to have been carrying weapons, were shot by police. They were taken to separate London hospitals, they are receiving treatment for their injuries,” he added.