Greater Manchester Police have confirmed that the suspect was re-arrested on suspicion of commission, preparation, and instigation of an act of terrorism.
The man was originally held on suspicion of serious assault.
The Arndale center was placed on lockdown at around 11:15am BST on Friday after a man was reported to be “lunging” at shoppers with a knife.
Assistant Chief Constable Russ Jackson revealed that two unarmed police community officers confronted the attacker, who then chased them as they called for back-up from the emergency services. He went on to stab three members of the public.
“Although the injuries are nasty we’re told thankfully they are not life threatening,” the police constable said.
Within five minutes of the attack, the man was arrested. Video footage posted online show a police officer handcuffing the suspect on the ground with another in attendance, armed with a taser.
We do not know the motivation for this terrible attack. It was random, certainly brutal, and terrifying for anyone who witnessed it,” the constable added.
Public transport in the surrounding area has been temporarily shut down. Police say they hope to get Manchester town center back to normal by Saturday morning.