A 37-year-old Algerian man was arrested at the scene and is being held in custody, according to officials.
Authorities are investigating the incident as an act of terrorism, France’s anti-terrorism prosecutor’s office confirmed.
“It is without any doubt an act of Islamist terrorism,” French President Emmanuel Macron told reporters at the annual French farm show shortly after the attack.
The attack occurred close to a demonstration that was taking place against the war in the Democratic Republic of Congo.
The attacker, who has not been identified by authorities, was on a file containing suspects said to have been “radicalised as terrorists,” Mr Heitz said.
“Horror has just gripped our city,” Michele Lutz, Mayor of Mulhouse said on Facebook. “A man attacked passers-by at the covered canal market with a knife, several municipal police officers who intervened to arrest him were also injured.”
It follows a spate of bomb, knife and attacks across France in recent years.
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