A police vehicle then screeches into shot, with three armed policemen exiting and immediately trying to rescue the man by diverting his attackers' attention towards them.
Two of the men, aged 27 and 29, were held on suspicion of preparing acts of terrorism while the third was detained over suspected drugs offences.
Within minutes, the attackers are shot dead and another police auto arrives as people are seen running for their lives.
In Manchester, police arrested two 20-year-old men on Wednesday in connection with last month's suicide bombing that killed 22 children and adults attending a concert by Ariana Grande, police said.
Police in London, who were searching for a French man missing since the attack, said earlier they had recovered a body from the River Thames.
The man was arrested in the eastern London suburb of Ilford, near Barking where two of the assailants lived.
Butt, 27, was named as one of the three men who killed seven people on Saturday night when they ploughed into people at London Bridge before getting out to stab people at random at nearby Borough Market.
On June 3, three terrorists Rachid Redouane, Youssef Zaghba, and Khuram Shazad Butt drove a van at high speed through a crowd on London Bridge.
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In the footage, which was confirmed to be legitimate by the Metropolitan Police Service, a man can be seen fleeing one of the terrorists, who is swinging a knife at him.
The rampage was brought to an end when the trio were shot dead by armed police eight minutes after the first emergency call.
"I was trying to help him and he pointed his baton towards the attacker and said "get him". He said eight other French citizens were wounded.
Charisse O'Leary said she has "shed many tears for the people caught up in this horrific incident". I didn't expect the level of love and well wishes I have received.
"I am deeply shocked, saddened and numbed by the actions of my ex-partner who has killed and injured so many innocent people", Miss O'Leary said.
Police continue to search the Ilford home and a business in Ilford as well, authorities said.
With cordons lifted around the site of the atrocity, Transport for London were forced to apologise after traffic wardens issued parking tickets to cars trapped in the crime scene since Saturday night.
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