Police reportedly shot two men after they repeatedly hacked at a man, believed to be soldier, to death with a machete or meat cleaver, in Woolwich south-east London.

The incident took place in John Wilson Street and the entire area is now sealed off by police.

Photos from the scene show a number of men on the ground. A blue car, believed to be that used by the attackers, is crashed against a road sign. A large pool of blood can be seen on the pavement nearby.

Nick Raynsford, MP for Woolwich, told the BBC: "It's been verified one person is dead, two seriously injured."

The dead man is believed to be a serving soldier at the nearby Royal Artillery barracks,although the MoD has not confirmed the fact but said it si looking into the matter.

Eyewitness said the victim was wearing a Help for Heroes T-shirt.

Circumstances of the incident are yet not clear.

One unconfirmed eyewitness report said that two men on a Vauxhall car ran over another man before getting out of the vehicle and beheading him with a machete.

According to other reports the attackers hacked their victim using meat cleavers.

A shootout erupted as police arrived at the scene. The two men have been taken to hospital, one in a serious condition, The London Ambulance service confirmed.

Car believed to have been driven by the attackersTwitter
Woolwich machete attack and shooting (mad_gyal_t/Twitter)Twitter
Police are seen at the scene of an incident in WoolwichTwitter
An aerial view of John Wilson StreetTwitter
An aerial view of John Wilson Street in WoolwichTwitter
The dead man is believed to be a serving soldier at the nearby Royal Artillery barracksWikicommons
Eyewitness said was wearing a Help for Heroes T-shirtFacebook