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NextImg:France knife attack: One dead and two injured in horror stabbing with suspect on 'terror watchlist'

One person has died and at least two have been seriously injured in a stabbing in a picturesque French town.

The attack took place at a market in the eastern city of Mulhouse, on the border of Germany, on Saturday afternoon.

The suspect, a 37-year-old man, was arrested at the scene.

He reportedly shouted "Allahu Akbar" (God is great) during the stabbing spree, according to local media.

One person has died and at least two have been seriously injured in a stabbing in a picturesque French town.

One person has died and at least two have been seriously injured in a stabbing in a picturesque French town.

Getty

The man is on a terror-prevention watchlist, local outlets reported citing the local prosecutor.

The watchlist, called terrorism and radicalisation prevention file (FSPRT), uses data from numerous authorities on individuals in the hopes of preventing "terrorist" radicalisation.

It was launched in 2015 following a series of attacks on satirical magazine Charlie Hebdo's offices, as well as a Jewish supermarket.

The suspect also reportedly has a previous conviction related to advocating terrorism, according to Le Parisien.