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An explosion in a restaurant near the German city of Nuremberg has killed at least one person and sparked fears of a fresh terror attack.

A police spokesman in the town of Anspach confirmed that blast had been reported, but had no further information.

Germany's NTV television reported that officials suspected the explosion was caused by a gas leak.

Germany is on high alert following the killing of ten people in an attack in Munich on Friday and today's machete attack near Stuttgart.

It is currently unclear what caused the explosion in the restaurant, but the area has been cordoned off by anti-terror cops.

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