The suspected perpetrator is described as a 23-year-old Syrian citizen. He was arrested shortly after the attack.
According to the police spokesperson Rainer Dionisio, he stabbed passersby in the city center.
He was stopped when a food delivery person who witnessed the attack drove into him with his car, which according to the police probably prevented further crimes.
It is still unclear whether there may be another perpetrator. It is also not established whether there was any relationship between the 23-year-old and the victims. A possible terrorist motive is being investigated, writes Kronen Zeitung.
Peter Kaiser, governor of the federal state of Carinthia where Villach is located, expresses his condolences to the 14-year-old's family.
"This outrageous brutality must be met with harsh consequences", he further states and says that those who live in Carinthia and Austria must "adapt to our rules and values".
Interior Minister Gerhard Karner will visit Villach on Sunday.