A French man allegedly uttered Allahu Akbar during a stabbing attack that left a British woman dead and two men wounded at a north Queensland hostel.
The 29-year-old also allegedly repeated the phrase as he was arrested following the knife attack at Shelley's Backpackers in Home Hill about 11.15pm on Tuesday.
A British woman, 21, was killed, while a 30-year-old British man remains in a critical condition.
A local man was also treated for injuries and a dog was fatally wounded in the attack.
Queensland Police Service Deputy Commissioner Steve Gollschewski said while investigations revealed comments which could be construed as being extremist, police had not determined whether the attack was terror related.
"While this information will be factored into the investigation, we are not ruling out any motivations at this stage, whether they be political or criminal," he said in Brisbane.
"Investigators will also consider whether mental health or drug misuse factors are involved in this incident."
Mr Gollschewski said the man didn't have any known links to the Islamic State group.
"This person appears to have acted alone," he said.
"He is a visitor to Australia and has no known local connections. However, investigations are ongoing."
Mr Gollschewski said police weren't looking for any other suspects and there was no known ongoing threat to the community.
"This is not about race or religion - it is individual criminal behaviour," he said.
It won't be known for some time whether the man was radicalised or motivated by terrorism, Mr Gollschewski said.
He said the man was lawfully in Australia on a temporary visa and there were no records of him being on any watchlist.
He had arrived in the country around March but had entered Queensland via another state and was staying at the hostel.
Police are yet to interview the man, who remains in Townsville Hospital with what are believed to be non-life threatening injuries sustained in the incident.
The victim's family's have been notified through the British consulate.
Australian Federal Police Commander Sharon Cowden said her officers were working with international law enforcement agencies.
