Prime Minister Scott Morrison has condemned a terror attack that killed three people in the French city of Nice.

An elderly woman has been beheaded and a man has been fatally stabbed in a horrific attack inside the Notre-Dame Basilica.

A third woman who was stabbed managed to escape to a nearby cafe, but died at the scene.

The suspected attacker was shot by police shortly after the attack and taken to hospital.

Mr Morrison told Ben Fordham he has been in contact with the French President.

“It is just the most cowardly and vicious act of barbarism by terrorists and should be condemned in the strongest possible way.

“Our information presently is that no Australians have been involved or hurt.”

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Police have identified the suspect as a 21-year-old Tunisian migrant.

A terror investigation into the attack has been opened.

Military personnel have been deployed to guard churches and places of worship.

The horrific attack comes just a fortnight after a Paris school teacher was beheaded.

Image: Arnold Jerocki / Getty