"He was applying for a residence permit that was rejected in 2016", police chief Jonas Hysing told reporters.
One of those identified as having died in the attack was a British citizen.
Swedish prosecutors yesterday arrested a second person in connection with the truck attack and were holding four other people.
The 70-year-old monarch says "Sweden is, has always been, and will continue to be a safe and peaceful country".
An Uzbek man suspected of ramming a truck into a crowd in Stockholm, killing four people, had expressed sympathy for Islamic State and was wanted for failing to comply with a deportation order, Swedish police said on Sunday.
The incident followed a similar attack in London last month when a man drove a vehicle into pedestrians on a bridge, then tried to rush onto the grounds of Parliament before he was shot and killed.
Flowers and candles are placed around stone lions near the department store following the suspected terror attack in central Stockholm, Sweden.
A statement from John Bevington, father of Chris, issued by the Foreign Office said: "We are all devastated by the untimely and tragic death of our talented, compassionate and caring son Chris".
The Swedish police also confirmed that a device was found in a driver's seat of the truck, but wasn't ready to call it a bomb. "We don't know if it is a bomb or some kind of flammable substance".
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The suspected attacker was an asylum seeker who had his application rejected, Stockholm police said. Police said eight people remained hospitalised.
The man arrested remains officers' prime suspect for the attack, which saw a hijacked lorry plough into the front of a shop in the pedestrian thoroughfare of Drottninggatan.
Several police cars parked near the scene were also covered in flowers by Swedes, who widely praised the emergency crews' speedy response to the attack.
He said he stayed in the bus a bit longer, before taking shelter in a clothing store on Kungsgatan.
"I've come here to honour the victims and the society in which we live".
In a speech Saturday outside the royal palace in Stockholm, the king said "it was natural for me to immediately return home to Sweden".
Prime Minister Stefan Lofven, addressing a Social Democratic party conference in the western city of Gothenburg, said Sweden would never be broken by acts of terror.
"The only thing he talks about is getting more jobs so he can send money back to his family", the friend told Aftonbladet. Witnesses said that the driver was trying to hit people as he steered.
"There are so many of us who want to help, many more than those who want to hurt us".
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