German police have arrested a man who is suspected of killing three people and injuring another eight in a stabbing incident during a festival in Solingen city, media reports said.

"The man we’ve really been looking for the whole day has just been taken into custody," Herbert Reul, the interior minister of North Rhine-Westphalia state, told ARD public TV late on Saturday as quoted by BBC.

The suspect is believed to have stabbed to death  Two men, aged 56 and 67, and a 56-year-old woman during the festival which was cancelled following the incident.

The suspect was reportedly detained at a refugee center.

A major manhunt was launched by the police following the stabbing incident which left the nation shocked.

Apart from deploying special forces, police initiated a major manhunt in German state of North Rhine Westphalia.

The motive behind the attack is still not clear but terrorism has not been ruled out completely.

ISIS claims responsibility

The Islamic State terrorist group has claimed responsibility for the attack.

However, the terror group did not provide evidence to support the claim.

A police spokesman, Thorsten Fleiß, said the attacker specifically targeted the necks of the victims.

“After evaluating the initial images, we assume that it was a very targeted attack on the neck,” he said during a press conference as quoted by CNN.

German Chancellor Olaf Scholz describes attack as 'terrible event'

German Chancellor Olaf Scholz has called the attack a 'terrible event' which shocked him.

"The attack in Solingen is a terrible event that has shocked me greatly. An attacker has brutally killed several people. I have just spoken to Solingen's mayor, Tim Kurzbach. We mourn the victims and stand by their families," he said in an X post.

Solingen Mayor Tim Kurzbach condoled the loss of lives in the tragedy.

"After the attack yesterday evening, the city of Solingen would like to express its condolences to the victims of the attack and their relatives with a memorial," the Mayor said in a Facebook post.

Stabbing incident takes place while city was celebrating festival

With a population of about 160,000, the city in North Rhineland-Westphalia, is popularly known for its steel industry.

The attack took place while the city was celebrating the “Festival of Diversity".

The festival is organised to mark the 650th anniversary of the city's founding.

Police earlier said the attack occurred close to a stage where a musical event was going on.