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The 27-year-old Syrian injured 15 people – three seriously – after detonating a backpack bomb outside Eugens Weinstube wine bar at about 10pm on Sunday local time (8pm GMT).

He had tried to get into the venue but blew himself up outside when he was refused entry.

He made chilling videos in Arabic where he threatened to attack Germany on his smartphone – later found by police.

The Syrian asylum seeker – named as Mohammad Daleel – had enough material to build another bomb and a wad of €50 notes in his hands.

After police released detais of the footage ISIS were quick to claim the attack, and an "insider source" told a news agency that he "was a soldier of the Islamic State who executed the operation in response to call sto target nations in the coalition fight the Islamic state".

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The wine bar is just yards from where 2,500 were enjoying the Ansbach Open Music Festival.

The bomber tried to get into the open-air festival but was turned away – and it appears the festival was his intended target.

Bavarian Interior Minister Joachim Herrmann said the bomb – which appears to have been packed with nails and screws – could have killed and injured many more.

Asked whether the bomber might have links to ISIS, Herrmann said that couldn't be ruled out – though there is no concrete evidence for this yet.

"My personal view is that it is unfortunately very likely that a real Islamist suicide attack took place here," he said.

The Syrian – who has not been named – entered Germany two years ago – but his asylum application was turned down a year ago.

But he was allowed to stay in Germany because of the ongoing war in Syria.

He was known to police, had tried to kill himself twice before and had been in psychiatric care.

Paramedics tried to revive him – but he died at the scene.

Germany's interior minister has since ordered an increased security presence at airports, train stations and elsewhere in the wake of a string of recent attacks.

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(Image: EPA)

Mr Hermann also said an attempted terror attack cannot be ruled out.

Spokesman Michael Schrotberger said: “If there is an Islamist link or not is purely speculation at this point.”

Authorities are currently probing any links to terrorist organisations.

(Image: REUTERS) (Image: REUTERS)

Mr Herrmann said: "It is terrible that someone abuses the opportunity to find protection here in such a way.

"I am appalled by that.

"We have to do all we can so that such violence in our country committed by asylum seekers who have come to our country will not spread any further."

(Image: REUTERS) (Image: REUTERS)

Police special forces cordoned off the area around the restaurant – which is in the old town area of the city, near Nuremberg, in Bavaria.

German special forces were at the scene.

More than 200 police officers and 350 rescue workers were involved in the operation – with firefighters drafted in from nearby cities to deal with the major incident.

(Image: TWITTER) (Image: EPA)

The explosion happened in the middle of the three-day Ansbach Open music festival – which has now been cancelled.

Up to 2,500 people had to be evacuated from the concert venue.

Heavily-armed police quickly descended on the scene.

People were evacuated and a large exclusion zone was placed around around the scene of the blast.

Witnesses report houses and hotels have been evacuated – and people cannot get back into their homes.

(Image: TWITTER)

Some local media initially reported the explosion was caused by a gas leak.

But authorities have confirmed it was a homemade bomb int he man's backpack.

Ansbach Mayor Carda Seidel confirmed it was an explosive device and a spokesman for the Bavarian Interior Ministry said the explosion was "not an accident".

The device appears to have detonated outside the front of the cafe – and may have gone off by accident.

(Image: REUTERS) (Image: REUTERS) (Image: EPA)

Ansbach is a small city – but home to a US army base called Katterbach Kaserne.

The blast was just three miles from the base, which is home to the 12th Combat Aviation Brigade.

Ansbach is just 90 miles north west of Munich – where an 18-year-old Ali David Sonboly shot nine people dead on Friday.

A 17-year-old from Afghanistan seriously injured three people with an axe and knife attack on a train in Würzburg, southern Germany, last week.

And earlier on Sunday, a 21-year-old Syrian refugee was arrested after killing a pregnant woman in a machete attack that killed one woman in Reutlingen, near Stuttgart.