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At least two people have been killed and several others injured as a suspected extremist opened fire near the iconic Christmas market in Strasbourg.

The horrifying scenes unfolded near the French city's market, which draws millions of people every year, on Tuesday evening. The scene remained on lockdown into the night.

Paris public prosecutor Remy Heitz said on Wednesday two people were killed in the attack and one was left brain-dead. Twelve were wounded, six seriously.

The gunman remained at large and was being hunted by police after being injured in an exchange of gunfire with a soldier before reportedly escaping in a hijacked taxi.

Police named the suspect as Strasbourg-born Cherif Chekatt, 29.

Strasbourg shooting: In Pictures 15 show all Strasbourg shooting: In Pictures 1/15 Police stand in the Neudorf area of Strasbourg, eastern France, after the shooting AFP/Getty Images 2/15 Police officers stand guard near the Christmas market EPA 3/15 French police officers stand guard near the scene AFP/Getty Images 4/15 Emergency workers at the scene AFP/Getty Images 5/15 Police officiers stand in the streets of Neudorf AFP/Getty Images 6/15 A police officer stands guard near a location where the attacker could be located EPA 7/15 A solider stands guard REUTERS 8/15 Police officers stand guard near the Christmas market EPA 9/15 Police stand in the Neudorf area of Strasbourg AFP/Getty Images 10/15 Police secure a street and the surrounding area REUTERS 11/15 Security officials cordoned off the area Aidan O'Sullivan 12/15 Police secure a street REUTERS 13/15 The incident is said to have happened near a Christmas market REUTERS 14/15 Police officer secures a street and the surrounding area REUTERS 15/15 The French Interior Ministry confirmed a "serious public security incident" REUTERS 1/15 Police stand in the Neudorf area of Strasbourg, eastern France, after the shooting AFP/Getty Images 2/15 Police officers stand guard near the Christmas market EPA 3/15 French police officers stand guard near the scene AFP/Getty Images 4/15 Emergency workers at the scene AFP/Getty Images 5/15 Police officiers stand in the streets of Neudorf AFP/Getty Images 6/15 A police officer stands guard near a location where the attacker could be located EPA 7/15 A solider stands guard REUTERS 8/15 Police officers stand guard near the Christmas market EPA 9/15 Police stand in the Neudorf area of Strasbourg AFP/Getty Images 10/15 Police secure a street and the surrounding area REUTERS 11/15 Security officials cordoned off the area Aidan O'Sullivan 12/15 Police secure a street REUTERS 13/15 The incident is said to have happened near a Christmas market REUTERS 14/15 Police officer secures a street and the surrounding area REUTERS 15/15 The French Interior Ministry confirmed a "serious public security incident" REUTERS

France immediately raised its terror alert level in the aftermath of the attack.

Officials said the suspected gunman has a criminal record and had been flagged as a suspected extremist.

A motive was not immediately clear but French authorities have launched a terror investigation.

The country is still on high alert after a wave of attacks commissioned or inspired by Islamic State militants since early 2015.

France’s national security alert system Vigipirate was raised to its highest level and the country’s interior minister Christophe Castaner said border security would be strengthened.

The suspect served prison sentences in France and Germany for common law offences, he added.

Mr Castaner said the decision to increase the security level to ‘emergency attack’ is to avoid the risk of a potential copycat shooting.

Of the 12 injured in the attack, six were in a critical condition in hospital.

Officials earlier indicated the death toll stood at four people, but this has since been revised and the number known to have been killed currently stands at two.

A Thai tourist was among the three victims. The Thai embassy in Paris named him as 45-year-old Anupong Suebsamarn, Sky News reported.

He is said to have just arrived in Strasbourg and was planning to travel to Paris on Thursday.

Some 350 people were working on the case as the gunman remained at large and two helicopters were deployed to support the manhunt.

The nearby European Parliament, which is about two miles from the city centre, was placed on lockdown as the incident unfolded.

Videos posted on social media showed people running through the streets while screaming could also be heard.

The suspect was said to have entered central Strasbourg via the Corbeau bridge to the south of the city centre, before heading to Rue des Orfevres, a popular shopping street close to the cathedral, where he opened fire.

There were unconfirmed reports of people being injured in several streets south of Place Kleber in central Strasbourg.

It is thought he may then have headed south of the city centre to the Neudorf or Place de l'Etoile area where people were advised to stay indoors.

Witness Pater Fritz told the BBC he heard gunfire and tried to help a person who had been shot. He said he and a group of people tried to resuscitate him but the man died.

"There were gunshots and people running everywhere," a local shopkeeper told BFM TV. "It lasted about 10 minutes."

Doris Manou told the BBC: "I saw the army with a group of 10 to 12 soldiers walking towards me with their guns pointed to the street and around them everyone was running from all directions

"The soldiers were very focused on their mission, they were running."

Local journalist Bruno Poussard said he heard more than a dozen shots being fired along the street where he lives before soldiers and police descended on the scene.

MEP Linda McAvan tweeted: "There's a shooting incident tonight in Strasbourg centre where Xmas market takes place.

"European Parliament on lock down. I and my staff are safe in the building."

European Parliament press officer Emmanuel Foulon described panic as the incident unfolded. He was one of a number people understood to have taken cover in bars and restaurants.

He wrote on Twitter: "Several people on the ground. We remain hidden since the first shots."

MEP Richard Corbett said he was in a restaurant in the city when shots "were fired" and the restaurant was "not letting anyone in or out".

Local authorities in the Grand-Est and Bas-Rhin region tweeted for the public to "avoid the area of the police station" close to the city's Christmas market.

Security officials cordoned off the area and trams stopped running.

Thorbjorn Jagland, the secretary general of the Strasbourg-based Council of Europe, said: "This is a serious incident and I advise all staff and visitors to stay at home or indoors for the moment."

"Thank you all for staying home while waiting for a clarification of the situation," Strasbourg deputy mayor Alain Fontanel added.

French president Emmanuel Macron adjourned a meeting at the presidential palace to be able to monitor the events, according to his office.

In a tweet, Mr Macron later said: "Solidarity of the whole Nation for Strasbourg, our victims and their families."

British prime minister Theresa May said she was "shocked and saddened" by the "terrible" attack.

She tweeted: "My thoughts are with all of those affected and with the French people."

Among those sheltering in the European Parliament was Conservative MEP Sajjad Karim, who was caught up in the Mumbai terror attacks in 2008.

The MEP for north west England tweeted that he was safe inside and sent his thoughts to the victims

Mr Karim was in the lobby of the Taj Mahal hotel a decade ago as gunmen stormed the building before he took refuge in a barricaded basement room. The attacks left 164 people dead.

Strasbourg Christmas market is one of the oldest in Europe with 300 wooden chalets set up in the city's historic centre from November 23 to Christmas Eve.

It was being held amid tight security this year, with unauthorised vehicles banned from surrounding streets during opening hours and checkpoints set up to search bags.

Roland Ries, the mayor of Strasbourg, said the Christmas market will be closed tomorrow and flags will be lowered to half-mast.

He tweeted: "A book of condolences will be opened at the Town Hall from today.

"I want to thank the people of Strasbourg and visitors to the city for their patience and understanding.

"A discussion is under way with the education authorities about possible closures to schools on Wednesday."