A taxi exploded outside Liverpool Women’s Hospital on Remembrance late on Sunday, killing the passenger and injuring the driver.
The UK police has later declared the incident as a terror incident.
Liverpool Mayor Joanne Anderson named the cabbie David Perry as a hero.
Four men have been arrested in the city in connection with Sunday’s incident.
The taxi passenger appears to have made an “improvised explosive device”. The device has later caused the blast, said Head of Counter Terrorism Policing North West Russ Jackson.
The police did not yet revealed the man’s motivation, added Assistant Chief Constable Jackson.
The mayor of Liverpool, Joanne Anderson, has praised the driver, telling BBC Radio 4’s Today programme: “The taxi driver, in his heroic efforts, has managed to divert what could have been an absolutely awful disaster at the hospital.
She added: “Well, we knew that the taxi driver had stood out and locked the doors, we knew that early on.”
However, she added it was important not to give speculation about the incident.
Oliver Dowden, the Conservative party chair, told Sky News:
“Clearly we’ll have to see exactly what happened but if that is the case it is another example of true bravery and courage.”