Canadian police say they have averted a planned terrorist attack in Toronto and have arrested a father and son in connection to the plot.

The Royal Canadian Mounted Police (RCMP) said 62-year-old Ahmed Eldidi and 26-year-old Mostafa Eldidi, were arrested on Sunday at a hotel in Richmond Hill, a suburb of Toronto.

The two are accused of a plot to carry out a “violent, serious attack” in Canada’s largest city for the benefit of or at the direction of the Islamic State group.

Both are facing charges of terrorism and conspiracy to commit murder.

The RCMP announced the arrests at a news conference on Wednesday.

Matt Peggs, assistant commissioner at the RCMP, said the men were in the “advanced stages” of planning the attack.

Both are residents of the Toronto area, police said.

Authorities became aware of the alleged planned attack in early July and launched a month-long investigation.

Police called the investigation “fast-moving” and said they are still working to determine the intended target of the alleged attack.

The exact nature of the threat is covered by a publication ban.

The two men are also facing weapons charges after they were found to be in possession of an axe and a machete, Mr Peggs said.

Police do not believe there is any further risk to the public at this time.

“The RCMP federal police take all threats to our national security very seriously,” Mr Peggs said.

“This was an imminent threat and we were able to prevent serious injuries or loss of life.”

The two accused are scheduled to appear in court on Thursday.