Solingen attack was 'terrorism against us all': Scholz

German Chancellor Olaf Scholz has branded the fatal stabbing in the western city of Solingen as a terrorist attack directed against the entirety of German society.

"That was terrorism. Terrorism against us all, threatening our lives, our sense of community, the way we live," Scholz said on Monday during a visit to the scene of the attack.

"We will not allow our community spirit to be destroyed by evil criminals who pursue the worst ideologies, and we will take action against them with the utmost rigour and severity," the German leader said by lashing out at extremists who "threaten peaceful coexistence."

Three people were killed and eight wounded by a knife-wielding attacker during a festival celebrating the city's 650th anniversary on Friday evening.

A 26-year-old suspect from Syria was subsequently remanded in custody by order of an investigating judge.

The federal prosecutor's office has taken over the case and is investigating the suspect for murder and suspected membership of the Daesh [ISIS] terrorist group.