Video report by ITV News Security Editor Rohit Kachroo
ITV News has obtained CCTV footage of Sudesh Amman in Streatham, moments before he stabbed two people on Sunday and was then shot dead by police.
The video shows Amman, 20, wearing a hat and coat and carrying a white bag walking down Streatham High Street.
Other pedestrians can be seen walking several metres in front or behind him, oblivious to the attack that was about to happen.
Soon after the footage was captured, Amman had stabbed two people and was shot dead by counter-terror police.
Amman had been released early from prison just 10 days before the attack, despite reportedly telling a fellow inmate that he wanted to "murder an MP".
He was sentenced to three years and four months in December 2018 for possessing and distributing terrorist documents, but was freed automatically halfway through.
The new CCTV footage comes as the government races against time to pass legislation to block at least six terrorists from being released automatically by the end of March.
ITV News Political Correspondent Paul Brand speaks on the government's plans to push through anti-terror legislation
Officials have set a February 27 deadline to pass legislation that would ensure offenders serve at least two-thirds of their sentence before they are considered eligible for release.
As many as 50 convicted terrorists could be released from jail this year, according to the latest published figures.
It is understood one offender is due for release on February 28, with a further five expected to be let out in March.
ITV News Political Correspondent Paul Brand reported that the person who could be released on February 28 was jailed for sharing so-called Islamic State propaganda online and calling for Shia Muslims to be "burnt alive".
Justice Secretary Robert Buckland said the legislation would also require a panel of specialist judges and psychiatrists to approve each offender's early release.
A Whitehall official said the Streatham attack highlighted issues surrounding terrorists with relatively short prison sentences.
"There aren't too many terrorist offenders who will be in that similar kind of scenario (to Sudesh Amman) but if there are any then that's too many and that's what we are looking to fix," the official said.
The Government plans to introduce the legislation in the Commons on Tuesday next week, with the aim of clearing the House by the time it rises for recess on Thursday.
The Bill will then go to the Lords on February 25 with the aim of getting royal assent on February 27.
On Wednesday Metropolitan Police Commissioner Cressida Dick said that while Amman was under close police surveillance after being released, such operations were not "man-to-man marking."
"They are there covertly and that is a deliberate thing... it is inevitable that there could be a time delay before somebody totally unexpectedly does something," she said.
"I wish I could assure the public that everybody who poses a risk on the streets could be subject to some sort of thing that would stop them being able to stab anybody ever, but it is clearly not possible."
There are at least 224 terrorists in prisons in Britain, with most thought to be holding Islamist extremist views, according to the latest figures.
Metropolitan Police Assistant Commissioner Neil Basu warned on Wednesday the threat of terrorism to the UK is "not diminishing."
The Independent Office for Police Conduct is investigating the police surveillance of Amman.