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'Lone Actor' With No Terrorist Link Behind 'Terrifying Carnage' In Sydney CBD

Police have said the Sydney stabbing attack has "no apparent links" to terror organisations, with early investigations pointing toward a "lone actor" attack from a man with a history of mental health issues.

NSW Police gave an evening update on Tuesday's CBD incident, where one woman was stabbed in the back and another woman was found dead in a nearby building.

The alleged offender has been named as Mert Ney, a 21-year-old man believed to be of Turkish descent.

Video captured by witnesses to the terrifying episode showed the man appearing to yell "allahu akbar" and "shoot me" as he was chased through the roads around Sydney's Clarence and York streets.

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NSW Police Commissioner Mick Fuller described the incident as "terrifying carnage", saying a 41-year-old woman was stabbed in the back in "what appeared to be a random attack". A 21-year-old woman, currently unidentified, was later found dead in a unit block nearby.

"All the information we have to hand would link these two crimes," Fuller said.

Police said the man was known to them, but quickly added they have uncovered no evidence the suspect -- identified as a 21-year-old Ney, from Marayong in western Sydney -- was linked to terror groups.

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"It is not currently classed as a terrorist incident. As the investigation continues, we will reassess that," Fuller said, adding "there is no information we are looking for any other offenders".

"He is, by definition at the moment, a lone actor. Information was found on him that would suggest he has some ideologies in relation to terrorism but he has no links to terrorism, there is no current intelligence on this individual and he has no apparent links to other terrorist organisations."

NSW Police Minister David Elliott said "the city is safe".

"From everything we have at the moment, there are no links with him to any terrorist organisations, no information that he was working on behalf of anyone else, but reinforcing that this investigation is live and ongoing," Fuller said.

"There was certainly information found on him about other crimes of mass casualties and mass deaths around the world. I haven't seen that information yet, so I can't expand on that."

"His history at the moment is unremarkable, compared to the gravity of the crimes."

Fuller said the man had been found with a USB thumb drive containing information about "crimes of mass casualties and mass deaths" in North America and New Zealand, but could not comment further about those documents or the incidents described.

"At this stage, I know he has a strong history of mental health, certainly much stronger than his connection with the NSW Police Force," Fuller said.