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British police said on Sunday they had launched a terror investigation into a non-fatal stabbing attack "inspired by the far right" in suburban London.

Counter-terror police said a 50-year-old man has been arrested on suspicion of attempted murder and racially aggravated public order offences following Saturday's incident in Surrey.

"While this investigation is still in its infancy, it has hallmarks of a terror event, inspired by the far right, and therefore it has been declared a terrorism incident," counter-terror police coordinator Neil Basu said.

"Police are committed to tackling all forms of toxic extremist ideology, which has the potential to threaten public safety and security."

Police said the suspect had been shouting racist abuse while walking down the street with a baseball bat.

They later received a call reporting a man being stabbed. A 19-year-old was taken to hospital with non-life-threatening injuries.

Police said the suspect carrying the baseball bat appeared to be one who stabbed the 19-year-old.

UK police are on heightened alert for extremist crimes following an attack on worshippers in two New Zealand mosque that claimed the lives of 50 people Friday.afp