Police say a French man shouting the Arabic phrase "Allahu akbar" stabbed a British woman to death and wounded two men in an attack at a hostel in northeast Australia.

Queensland Police Service Deputy Commissioner Steve Gollschewski said on Wednesday that the 29-year-old suspect did not have any known links to the Islamic State group and appeared to have acted alone. Police were still investigating the motive behind the attack and will consider whether mental health issues or drug use was a factor.

The attack took place on Tuesday night at a hostel in the town of Home Hill in northern Queensland. Police say a 21-year-old British woman was found dead at the scene and a 30-year-old British man was in critical condition.