The woman killed by a knife-wielding attacker in New York’s iconic Times Square has been identified as the vice president of Bank of America, US media reported and the bank confirmed.

Erin Piacenti, 32, was fatally stabbed near Times Square on Monday before police shot dead the suspect, who had also wounded an elderly man.

"We are shocked and deeply saddened by the tragic loss of our colleague. She was a valued teammate who will be greatly missed. Our hearts go out to her family and all of her loved ones," the US banking giant said in an emailed statement to Reuters news agency.

The alleged attacker, identified by the New York police as 49-year-old Pamela Cisneros of Queens, was shot by police after officers confronted her following the stabbing of two people in the area of West 42nd Street and Seventh Avenue.

NYPD Commissioner Jessica Tisch said the officers engaged Cisneros in dialogue for about four minutes and repeatedly ordered her to drop the knives, but she refused.

According to Tisch, Cisneros told the officers: "I'm not dropping anything. I would rather kill both of you."

Tisch said the woman began waving the knives and advanced towards the officers. Multiple officers deployed Tasers, but they were ineffective, after which two officers discharged their service weapons, striking Cisneros.

The shooting was captured on the officers' bodycams, according to Tisch.

Cisneros was taken to Bellevue Hospital, where she was pronounced dead, Tisch said. She had a documented mental health history with the NYPD, including incidents in 2018 and 2019, but had no arrest history with the department.