Two people were shot dead and three others were injured by a lone gunman this morning at the Heaven Sala Palace on the calle Priora, close to the Plaza Isabel II in Madrid city centre.

The incident started in the reception area at around 3am and continued on the street outside.

Emergency medics arrived on the scene to find one man, believed to be one of the bouncers, already dead on the pavement outside the disco with a bullet wound to the neck.

The most seriously injured of the survivors, who was found on the calle Arenyal with two bullet wounds to his chest, was taken in a critical condition to the Gregorio Marañón Hospital, but has since died.

A 28-year-old man found inside with a thigh wound was taken to the Hospital de la Concepción, while one of the other victims, a man in his early thirties found in the Plaza de Celenque who had been shot twice in the back, was taken to the Hospital Clínico.

The other victim was treated at the scene for a minor head injury.

A man was arrested near the scene shortly after the attack after he was found to be carrying a handgun.

Police believe that the motive may have been revenge.