A local businessman was also lauded as a hero after being stabbed in the leg while trying to disarm the attacker
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A third child has died in hospital after a horror knife attack at a Taylor Swift-themed dance class.
Merseyside Police confirmed the nine-year-old girl died in the early hours of this morning.
The two other fatalities were girls aged six and seven.
Eight other children suffered stab wounds sustained during the attack, and five of them are in a critical condition.
Floral tributes have been left at the scene
PA
"Sadly we can confirm that a third child has passed away as a result of injuries sustained in a knife attack in Southport yesterday morning," Merseyside Police said in a statement.
"The nine-year-old girl died in hospital in the early hours of this morning, Tuesday 30 July.
"We can confirm that the children who died yesterday were girls aged six and seven years.
"Eight other children suffered stab wounds sustained during the attack, and five of them are in a critical condition.
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Emergency services near the scene in Hart Street, Southport,
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"Two adults are also in a critical condition after being injured during the incident."
A 17-year-old boy, who cannot be named for legal reasons, remains in custody accused of murder and attempted murder following the incident in Hart Street yesterday.
The teenager who was born in Cardiff, is from the village of Banks, just outside Southport, and a road in the area was cordoned off by detectives on Monday afternoon.
A Southport businessman who ran into a Taylor Swift-themed dance club was also lauded as a hero after being stabbed in the leg as he tried to disarm the attacker.
Jonathan Hayes, 63, was among those who tried to intervene as a knifeman launched a horrific attack on a group of children enjoying a workshop at the beginning of the school holidays.
Hayes' wife Helen told The Telegraph he regrets not being able to do more to stop the "ferocious attack" at the dance school.
Helen said: "Our office is in the same building as the dance studio, he heard screams and went outside, saw the attacker, saw that he had hurt a child and tried to take the knife off him and got stabbed in the leg.
"The dance studio is tucked away down a little alley, you wouldn't know that there was a children's dance studio there just by walking past – you would have to have known it was there.
"I've been with [Jonathan] all afternoon at the hospital. He's very upset that he wasn't able to be more help. Physically he will be okay, mentally I don't know."
Colin Parry, the owner of the Masters Vehicle Body Repairs, which is stationed about 50 metres from the scene, said he had a heated exchange with a young man he believed to be the attacker moments before the attack.
Parry said: "He came down our driveway in a taxi and didn’t pay for the taxi, so I confronted him at that point. He was quite aggressive, he said, ‘What are you gonna do about it?'"
A member of staff saw "about 10 kids go running past him, all bleeding, and one of them collapsed on the floor outside the neighbour next door."
He added: "I went out and there’s two or three kids just lying on the floor. I mean, it’s a frenzied attack. It’s not one stab. He’s gone crazy, the lad’s gone crazy."