One person has died and several are wounded following a knife attack at a town market in eastern France, in what French authorities have described as an act of terror.

As he began his attack, the 37-year-old was heard shouting, “Allahu akbar,” according to France’s antiterrorism police. The Arabic phrase, meaning “God is great,” is an everyday expression used in religious and nonreligious settings alike, but has also become a war cry in some terrorist attacks by Islamic fundamentalists.

One person has been killed and five police officers injured in a knife attack in the eastern French city of Mulhouse. A 37-year-old Algerian man was arrested at the scene and the prosecutor has opened a terrorist inquiry because the suspect reportedly shouted "Allahu Akbar", or "God is great".