Woman shot after stabbing rampage in NYC's Times Square

A woman who randomly stabbed two people in New York City's Times Square, killing one woman, has been shot dead by police.

The shooting happened on Monday next to a New York Police Department substation, just outside One Times Square, the building that hosts the city's annual New Year's Eve ball drop celebration.

It is one of the most heavily touristed and policed spots in New York.

The woman pulled out two knives from a shopping bag and stabbed a 68-year-old man in the abdomen before quickly turning and stabbing a 32-year-old woman also in the abdomen, police said at a news conference.

Both were taken to the hospital. The woman died and the man was in a stable condition.

Videos posted on social media show a group of at least 10 officers gathered around the woman, who was holding two large kitchen knives. At least one officer appeared to try to subdue her with a Taser, but it did not incapacitate her.

The video then shows the woman walking quickly toward the officers while waving the knives in front of her. As one officer backed up, he and at least two others pulled their handguns and fired.

The woman fell to the ground, where an officer handcuffed her before rolling her onto her back and rendering first aid.

The NYPD closed part of 7th Avenue and warned the public to stay away from the area.

Police tape cordoned off the area as a large group of law enforcement officers worked nearby.