Interior Minister for Bavaria Joachim Herrmann confirmed the attack was motivated by fundamentalist religious indoctrination.
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Police found bomb-making materials in his room, in an Ansbach refugee center, and prosecutors revealed Monday the suspect had six Facebook accounts, which he used to publish Islamist material.
The 27-year-old Syrian, whose asylum application was turned down in Germany, vowed to take “revenge against the Germans for obstructing Islam”, Bavarian Interior Minister Joachim Hermann told a press conference.
“A video made by the assailant was found on his mobile phone in which he threatened an attack”, Herrmann said.
Europe has been on edge for months after a string of deadly attacks claimed by Daesh, including bombings in Brussels and the carnage at Bastille Day celebrations in the southern French city of Nice.
Two people were also wounded in the machete assault, which ended when the 21-year-old attacker was hit by a vehicle.
The bomber was refused entry to the music festival because he did not possess a ticket after which he detonated explosives packed with shrapnel in his backpack.
Roman Fertinger, the deputy police chief in nearby Nueremberg, said it was likely there would have been more casualties if the man had managed to enter the concert venue.
Four members of a tourist family from Hong Kong and a German passenger were seriously injured on July 18 by a 17-year-old migrant wielding an axe and a knife on a regional train in southern Germany.
The revelations focused more attention on the security implications of the more than a million refugees and migrants who arrived in the last year-and-a-half, and raised pressure on Chancellor Angela Merkel to ramp up domestic security.
The Ansbach bomber, who was among those rejected for asylum in 2015, appears to have been placed in a former hotel in the town, designated by the municipal authorities for asylum seekers since 2014.
A spokesman for Germany’s Interior Ministry said the man had received two deportation notices. Authorities say he was undergoing psychiatric treatment and had no known links to terrorism.
On Friday, the 18-year-old son of Iranian immigrants went on a rampage at a Munich mall, killing nine people and wounding dozens.
The attack in Ansbach comes after three other recent attacks in Germany. “The obvious intention to kill more people indicates an Islamist connection”.
A short police statement said, “A man, according to our current knowledge the perpetrator, died”.
On Monday, German police raided a shelter for asylum seekers looking for any evidence that might assist in the investigation.
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“Syrians can not at the moment be deported to Syria, but that doesn’t mean that Syrians overall can not be deported”, he told reporters in Berlin. “He carried out the operation in response to calls to target countries of the coalition that fights the Islamic State (in Iraq and Syria)”, it said.
