Several people have died and more have been injured after a terror attack which saw a lorry plough into pedestrians in Stockholm.

Police issued an image of a man they want to trace in connection with the outrage in a busy shopping district in the centre of the Swedish capital.

Prime Minister Stefan Lofven said the incident appeared to have been 'a terror attack' as police said the driver of the truck had fled.

Despite earlier reports and pictures on social media, a police spokesman said there had been no arrests, adding: 'For the moment police are searching for a person or persons.'

Blood stains were visible on the streets along with bodies covered in blankets in the aftermath of the incident.

Paramedics could also be seen tending to the injured near the lorry, which was embedded in the corner of a shopping mall with its cab burning.

The incident was in Drottninggatan, a street in a busy shopping district in the centre of the Swedish capital.

Vu Ly, a 24-year-old student living in Stockholm, witnessed the incident.

He said 'it was very intense', and 'people were going crazy'.

The student, originally from Vietnam, compared the scene to last month's attack in Westminster, adding: 'I've never witnessed anything like that with my naked eyes, it was terrible.'

The attack comes after trucks were used in terror attacks in Nice and Berlin last year and just two weeks after Muslim convert Khalid Masood ploughed his car into pedestrians on Westminster Bridge in London.