Danish police shot the terror suspect in the early hours of Sunday morning in the inner-city neighbourhood of Noerrebro, where officers had been keeping an address under observation.

The location was being staked out after two shooting incidents, one at the Krudttoenden cultural center and the other at a synagogue in Krystalgade. There was a fatality in each incident.

"At one point a person who could be interesting in relation to the investigation arrived at the site," police said in a statement on Sunday.

After officers called out to him "[the man] opened fire against the police and was thereafter shot," the statement added.

"The police are now investigating if the person could be behind the shootings at Krudttoenden and the synagogue in Krystalgade."

Police later said they believed both shootings had been carried out by the man who was killed by officers. "We are still investigating whether he acted alone," police spokesman Jorgen Skov said.

Manhunt

Authorities had warned Copenhagen residents to stay off the streets as they searched for a man who fired shots in Krystalgade, near the capital city's main synagogue in the early hours of Sunday morning.

A young Jewish man was shot in the head and died, and two policemen were shot in the arm and leg, police said in a statement early Sunday.

Authorities evacuated the nearby Noerreport train station and train services into it were halted.

The man fled the scene on foot, with roadblocks being set up and public areas cleared shortly after the second shooting.

Vehicles travelling towards Sweden on the Oresund bridge were searched. Surveillance was also stepped up at border entries to Germany.

Police said they were looking for a male suspect aged 25 to 30. They also released a number of surveillance camera photos.

Cafe death

Hours earlier on Saturday, a gunman burst into a cafe where controversial cartoonist Lars Vilks and his supporters had gathered. One man was killed and three police officers were wounded before the gunman fled the scene, police said.

After the attack, what appeared to be the man, dressed in dark clothes, stole a car and drove away, police said. The vehicle was found between two train stations.

Prime Minister Helle Thorning-Schmidt said that "all resources will be used to find (those responsible) and bring them before a judge."

"We have some difficult days ahead," she said.

ksb/rc (Reuters, AFP, AP, dpa)