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Oktoberfest closed after bomb threat and deadly explosion

German police have closed the Oktoberfest fairground following a bomb threat from the suspected perpetrator of an explosion in northern Munich, city officials say.

At least one person's death was believed to be connected to the explosion at a residential building early on Wednesday, which Munich police said was deliberately set on fire and part of a domestic dispute.

It was not immediately clear whether the deceased was the suspected perpetrator or someone else.

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Another person, who was not considered to be a danger to the public, remained missing.

Specialised teams were called to the scene to defuse booby traps in the building, police said. Photos from the area also showed a burned-out van.

Officials discovered the bomb threat to Oktoberfest in a letter from the alleged perpetrator. Police searched the fairgrounds for other explosive devices and asked workers to leave the area.

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Authorities said the festival would be closed at least until 5pm on Wednesday (1am Thursday AEST).

This year's Oktoberfest began on September 20 and ends on October 5.

The world's largest beer festival usually attracts up to 6 million visitors.

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