The Metropolitan Police has confirmed the two members of the public have been killed in the London Bridge terror attack.
The Met also confirmed earlier today that a male suspect had been shot dead by officers during the response to the incident.
Scotland Yard added that a number of people had been stabbed during the rampage.
Whitehall sources have now said that two victims have died.
Sadiq Khan, London Mayor, had said earlier that some of the victims had been injured “seriously”.
He also hailed the “breathtaking heroism” of those who intervened before the suspect was shot dead by police.
The London Ambulance Service declared it a major incident. One picture on social media appeared to show a body covered with a blanket.
One office worker told the Standard: “When we were evacuated out of the office after being locked down, we could see two bodies under covers.”
Several people were stabbed by the knifeman before he was grappled to the ground and disarmed by members of the public on London Bridge.
Footage on social media showed one man being urged to move away by armed officers before the suspect was shot at point-blank range.
Another bystander could be seen carrying a large knife from the scene.
Prime Minister Boris Johnson also joined in the widespread praise of the members of the public who intervened.
Eye-witnesses said the suspect appeared to be wearing a suicide vest but Neil Basu, the head of UK counter-terrorism policing, said the vest was a fake.
He said police were called at around 2pm on Friday to a stabbing “at a premises near London Bridge”.
The bridge was the scene of a terror attack in 2017 – also during a general election campaign – when eight victims were killed along with the three terrorists, who were also wearing fake suicide vests and armed with knives.
Speaking in Downing Street, Mr Johnson said: “To the best of our knowledge the incident has been contained and I pay tribute again to the work of the police and the emergency services and what they have done.
But I would urge everybody, of course, to be vigilant and one cannot help but think back to what happened in 2017 in the same part of the city and I hope very much that people will be able as fast as possible to go about their normal business.”
The Independent Office for Police Conduct watchdog said it has launched an investigation into the police shooting of the London Bridge attacker which is standard for such incidents.
Witnesses described a scene of panic around London Bridge, moments after the incident.
Nurse Jackie Bensfield, 32, described how she asked to be let off a bus on London Bridge after she heard “five or six” gunshots.
Ms Bensfield, who was on her way home from work, said she exited the bus and “ran like hell” to escape the shots.
Cecilia Sodero was on the top deck of a bus going over London Bridge when she heard shots and saw a man lying on the ground with a “very scary device, like a bomb device”.
She told Sky News she saw “six people holding someone on the floor”, adding: “At some point someone says ‘oh, he has a knife’, and we were like, oh my gosh, this guy is supposed to stab someone and people was running away.
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