A third victim of the Dizengoff terror attack has passed away in hospital.

35-year-old Barak Lufan, head coach of the Israeli national kayak team and father of three
died on Friday afternoon after being shot on Dizengoff street in Tel Aviv on Thursday night.

The first two Israelis identified as being killed in a terror attack in Tel Aviv last night have been named as childhood friends Tomer Morad and Eytam Magini, both 27, from Kfar Saba.

Morad and Magini were at the Ilka bar on Dizengoff Street in central Tel Aviv when gunman Ra’ad Hazem, a 28-year-old from Jenin in the West Bank opened fire.

Eytam Magini's employer software giant Wix.com said in a statement: "We’re deeply saddened by the tragic loss of our devoted and beloved member of the Wix family, Eytam Magini, who was murdered by a terrorist last night in Tel Aviv.

"Eytam was smart, full of charisma, and had a million-dollar smile. In the year he was at Wix, as a skilled developer, he became a very important and trusted part of our team."

Multiple leaders have condemned the attack with Naftali Bennett saying: “The entire nation of Israel mourns the grief of the families of those killed and prays for the health of the wounded. Our war on murderous terrorism is long and hard. We will win.”

Mahmoud Abbas, the president of the Palestinian Authority, also made a rare condemnation of the terror attack, saying: “The killing of Palestinian and Israeli civilians only leads to a further deterioration of the situation, as we are all striving for stability, especially during the holy month of Ramadan and the upcoming Christian and Jewish holidays.”

Eight other people were left wounded in the attack, which culminated in a city-wide manhunt for the gunman and ended with police shooting him in Jaffa.

The attack, which started in the early evening in one of Tel Aviv's busiest streets, caused panic in the area with mobile phone footage shared on Twitter showing people running for their lives from the scene.

Heavily armed counter-terror troops were later seen moving rapidly in formation along central Tel Aviv streets on the hunt for any suspects.

Tel Aviv residents have been advised to stay indoors and away from their windows until all suspects have been apprehended.

Officials at Ichilov Medical Center said two people caught in the attack have died.

Eight further casualties are being treated at the hospital.

Four are said to be in a serious condition. Two are in a moderate to serious condition, and two more mildly hurt, said officials.

While the motive for the attack was not immediately clear, it comes after a series of terror attacks in Israel over recent weeks.

Four Israelis were stabbed to death by a terrorist in Be’er Sheva on 22 March.

Five days later, two police officers were shot dead in Hadera.

A shooting attack in Bnei Brak on 30 March left five victims dead.

Reacting to the news of the Dizengoff Street attack, British Foreign Secretary Liz Truss said: "Appalled by the latest reports from Tel Aviv, where innocent people enjoying a Thursday night with friends and family were targeted by gunfire.

"The UK stands with Israel and against this abhorrent violence."