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

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."

Home Secretary Theresa May said she had been briefed by the director general of Security Service MI5, Andrew Parker, and Metropolitan Police Commissioner Bernard Hogan-Howe on the "sickening and barbaric" attack.

Mr Cameron said Britain had faced "these sort of attacks", adding: "We will never buckle in the face of them.

"People across Britain, people in every community, I believe, will utterly condemn this attack."

He expressed sympathy for the victim and his family, saying: "It is the most appalling crime. We are obviously seeking, and the police are urgently seeking, the full facts about this case."

One witness, identified only as James, said two men had attacked another man, aged about 20, who was wearing a T-shirt of military charity Help for Heroes.

"These two guys were crazed. They were just animals. They dragged him from the pavement and dumped his body in the middle of the road and left his body there," he told LBC radio.

He said after the "horrendous" attack, the two men, who were also in their 20s, stood around, waving knives and a gun, and asked people to take pictures of them "as if they wanted to be on TV or something".

"They were oblivious to anything, they were more worried about having their photo taken, running up and down the road," he said.

Witness Graham Wilders told the BBC he had arrived on the scene to find a car crashed into a wall and a man on the ground.

"Two people were lying over him and I thought they were trying to resuscitate him," he said.

-BBC