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Cops confirmed they had shot and killed five people in Cambrils – a coastal town 120 kilometres southwest of Barcelona.

A group of people reportedly attempted to drive a van onto a pedestrian area in the town but the van overturned and its occupants were shot by police – according to local Spanish news outliet Cadena Ser.

There were fears the suicide belts the terrorists were wearing were real – but that has been played down by the Catalan regional head who confirmed they were fake.

The van attackers struck and wounded several people before they were taken out by terror cops.

Seven people were injured by the terrorists, with two people in serious condition.

Of the seven, six were civilians while the other person was a police officer – according to AFP.

(Image: TWITTER) (Image: TWITTER)

Spanish cops confirmed: “We have shot those presumed to be behind it.”

Catalan emergency services said on Twitter that people in Cambrils, should "stay home, stay safe."

Bystanders could be seen running for cover and several gunshots heard in footage posted on social media that appeared to have been filmed on the town's beachfront promenade.

Carles Puigdemont‏, the Catalan president, has thanked the police involved in the Cambrils operation “in these critical and tragic hours”.

(Image: TWITTER)

Bomb squad personnel were said to have attended the crime scene to work out whether the terrorists were wearing explosive belts.

Cops then carried out several controlled explosions to deal with the threat.

Catalan police said they believe the attackers killed in Cambrils are linked to the deadly incident in Barcelona.

They also confirmed they thought the terrorists were related to the gas explosion which killed one person the night before the ramming attack.

(Image: TWITTER)

The second attack comes just hours after a terrorist drove a van into pedestrians in a busy tourist area of Barcelona, leaving at least 13 people dead and more than 100 injured.

Armed police carrying machine guns swooped on the historic Las Ramblas boulevard moments after the white van mounted the pavement and zigzagged into dozens of pedestrians.

ISIS has claimed responsibility for the attack through its offical Amaq News Agency.