German investigators have announced that they suspect a "xenophobic motive" behind shootings that left 10 dead on Wednesday night in the German city of Hanau.

Federal counter-terror prosecutors took over the case just hours after police discovered the suspected shooter dead at his home early on Thursday morning. 

According to a spokesperson for the prosecutors, the probe was of "particular importance" and there were "signs of a xenophobic motive."

Text and video material were reportedly found at the alleged offender's home, who has been identified as a 43-year-old man known as Tobias R.

The text contains "various, but mostly extreme right views, with a do-it-yourself ideology cobbled together out of parts found on the internet," according to King's College London counter-terrorism expert Peter Neumann, who tweeted about the attack.

"The pattern is clear, and not at all new," he added.

Interior minister of the German state of Hesse Peter Beuth announced on Thursday morning that the alleged shooter was in legal possession of arms and was a sports marksman.

He also confirmed that the suspect's mother had been found dead with gunshot wounds at his home.

How it happened

The attacks took place at two bars in Hanau, some 20 kilometers (12 miles) from Frankfurt, with armed police quickly launching a manhunt for the those responsible. 

The first shooting occurred at a bar in Hanau's central Heumarkt district at around 10 pm (2100 GMT). 

A gunman reportedly rang the bar's doorbell and started to shoot at people in the smoking area, killing five including a woman, according to Bild newspaper.

"The victims are people we have known for years," the manager's son told German news agency DPA. Two of the victims were employees, according to the man, who was not on site during the shooting. "It is a shock for everyone."

Police have since reported that one of those injured in the attack had also died.

The culprit, or culprits, fled the scene in a car, according to police. There was then a second shooting at Hanau's Arena Bar.

Local media reported that three people were shot and killed outside the building. Witnesses reported hearing a dozen shots.

A silver Mercedes-Benz covered by what witnesses said looked like a survival blanket was seen behind a police cordon outside the bar.

'A terrible night'

Hanau's mayor Claus Kaminsky said to Bild that it had been "a terrible night".

"You could not imagine a worse night. It will of course keep us busy for a long, long time and remain a sad memory.

"I am deeply moved," he said. "Just the fact that eight people have lost their lives has shaken me up. But I ask all citizens not to speculate. 

"The police must have the chance to clear up the situation and investigate -- until then, we should wait with prudence, no matter how hard this may be."

Katja Leikert, the region's MP, described it as "a real horror scenario".

"On this dreadful night for Hanau, I would like to express my deepest condolences to the relatives of those killed. I hope the injured will recover quickly," she said.

Far-right attacks have become a growing concern for German authorities in recent years. 

In October, a deadly anti-Semitic shooting in the eastern city of Halle on the Jewish holy day of Yom Kippur underlined the rising threat of white supremacist extremism, leaving two dead.

Last June, conservative politician Walter Luebcke, a supporter of refugee rights in Germany, was shot at his home. 

On Friday police arrested 12 members of a German extreme right group thought to have been planning "shocking" large-scale attacks on mosques.