An armed man has been shot dead by German police near the Nazi documentation centre and Israeli consulate in the southern city of Munich.

The man, identified by police as an 18-year-old Austrian national, was hit during an exchange of fire with officers.

Police said a man had been spotted in the area carrying a long firearm. Five officers then exchanged fire with their service weapons.

The Israeli consulate was closed at the time for a memorial service marking the 52nd anniversary of the 1972 Munich Olympics attack by Palestinian militants, which killed 11 Israeli athletes and a police officer.

Bavarian Interior Minister Joachim Herrmann said there was no immediate motive behind the incident, but that it may have been linked to the anniversary.

He added that it was “possible” the armed man had planned to attack an “Israeli institution”. Police said there were no indications of any other suspects in Thursday’s incident.

Munich police chief Thomas Hampel said the man was armed with a vintage hunting rifle. German media reported that he was previously known to security services on suspicion of supporting violent Islamist groups, but police declined to comment on the reports.

Cordons were put in place in the area around Karolinenplatz and neighbouring Briennerstrasse, close to the centre of the city.

People in nearby residential or office buildings were urged to stay inside. Police said they were working to “clarify” the situation and warned against speculation.

A police helicopter circled over the area and the public were asked not to post images of the incident on social media.

Munich’s documentation centre for the history of National Socialism opened nine years ago on the site of the former Nazi party’s headquarters or “Brown House”.

No-one at the consulate was hurt. After the shooting, police decided to raise security at Munich’s main synagogue, according to local reports.

Israeli Consul Talya Lador thanked the police for their response and said the incident showed “how dangerous the rise of antisemitism is”.

Israel’s President Isaac Herzog said he had spoken to his German counterpart, Frank-Walter Steinmeier, adding that they shared condemnation and horror at the attack.

“On the day our brothers and sisters in Munich were set to stand in remembrance of our brave athletes murdered by terrorists 52 years ago, a hate-fuelled terrorist came and once again sought to murder innocent people,” he said.

German Interior Minister Nancy Faeser said that protecting Jewish and Israeli institutions was of the highest priority.

“It’s very sad the incident took place in front of the Nazi documentation centre and Israeli general consulate,” she said.