The two men who carried out the attack apparently shouted 'Allahu Akbar', which means 'God is great' in Arabic, and tried to film the attack, the BBC's political editor Nick Robinson said.
Eyewitnesses said the 'crazed' [Black] men, aged in their 20s, launched a ferocious attack and were 'hacking at him, chopping him and cutting him.'
This afternoon the area’s MP, Nick Raynsford, told BBC Radio 5 Live he believed the victim, a man aged in his 20s, was a serving soldier.
The man is believed to have been hacked to death after a car crash. The scene of the attack is just 200 yards from Woolwich Barracks.
Mr Raynsford said:
'We think a serving soldier was the victim. We don't know the circumstances surrounding the incident.The Ministry of Defence said it was urgently looking at the reports that the incident involved a soldier but had no further comment.
'We do know a number of weapons have been seized. They include a gun, various knives, and a machete, apparently.
'The police clearly had to take action in order to try and arrest these individuals.'
RAW FOOTAGE: THREE DEAD BODIES LYING ON THE STREET OF WOOLWICH
PERSON DEAD WITHOUT A HEAD CONFIRMED AS A BRITISH SOLIDER. TWO SOMALIANS CRITICALLY INJURED BY POLICE....