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Ann Widdecombe was killed in a “targeted attack”, police have said.
Scotland Yard gave the update as detectives were given more time to question a 28-year-old man suspected of murdering the veteran politician at her home in Devon.
A warrant of further detention means the suspect can now be held for questioning for up to seven days under the Terrorism Act.
Head of Counter-Terrorism Policing Assistant Commissioner Laurence Taylor confirmed officers were still working to establish the motive behind the killing of the former Tory MP.
“It is clear this was a targeted attack”, he told reporters on Tuesday, saying detectives are “still working to understand” the planning and the motivation.
He stressed that the killing has not yet been declared a terrorist incident and that investigation is running parallel to the murder inquiry.
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“We are working through what the motivation for this attack currently is, he said.
“I wouldn’t want to comment on what that motivation was yet. We are aware that there has been some preparation and planning.”
Head of Counter Terrorism Policing, Assistant Commissioner Laurence Taylor, reads a statement on the investigation outside New Scotland YardPACounter-terror detectives are now leading the investigation into the suspected murder of Ms Widdecombe last week after “new information and evidence” came to light.
Police discovered material suggesting that political ideology could be a factor in the motive, The Times has reported.
The white British man was arrested in Rotherham on Saturday evening on suspicion of murder.
Detectives re-arrested the suspect on suspicion of commission, preparation or instigation of acts of terrorism on Monday.
CCTV footage captured the moment the suspect was first arrested.
The moment the Ann Widdecombe suspect was arrestedSky News Footage from a nearby CCTV camera, obtained by Sky News, captures the moment officers raided a home and arrested him before leading the suspect away shirtless and in handcuffs.
The 28-year-old is believed to have made the 540-mile round trip from the town in South Yorkshire to Devon, where the former Tory minister lived, on Wednesday, the day when it was believed she was killed.
Home Secretary, Shabana Mahmood, confirmed that the murder suspect was not known to the Government's anti-terror programme Prevent.
Ms Widdecombe, who most recently was a Reform UK spokeswoman, was found dead at her home in Haytor on Dartmoor on Thursday morning having sustained serious injuries.
A 26-year-old man detained on Friday was released and in no longer part of the investigation, police said.
Tributes from across the political spectrum were paid to Ann Widdecombe after her death (Lucy North/PA)PA ArchiveIn a statement on Monday, Counter Terrorism Policing South East said. "A 28-year-old white British man from Rotherham, South Yorkshire, was arrested on suspicion of murder on Saturday 11 July.
"New information and evidence have come to light during what has been a dynamic and complex investigation and as a result, Counter Terrorism Policing South East (CTPSE) is now leading the investigation.
"The man in custody has since been re-arrested on suspicion of commission, preparation or instigation of acts of terrorism."
Making a statement in the House of Commons, Ms Mahmood said: “The police now have a suspect in custody, a 28-year-old white British man.
“And I can confirm to the House that this man was not known to Prevent.
“The police have cautioned against speculating about the case – that is the right thing to do for Ann’s family and friends.”
It comes as Nigel Farage faced calls for restraint after sharing his thoughts about the suspected murder.
Mr Farage is facing criticism for remarks he made to the press in Devon after paying tribute to Miss Widdecombe on Saturday.
The Reform UK leader said he is "100% certain" the death wasn't a burglary gone wrong.
He told reporters he believed the attack on her was “premeditated murder” and said a car had appeared on her drive at around 12.25pm on Wednesday.
“From what I can see of it, from what I can make out, this was premeditated murder,” he said.
“Whether it's politically motivated, whether it was somebody with a grudge, I don't think it pays at this moment in time to speculate.”
The ex-Tory prisons minister was found dead at her home in Haytor on Dartmoor on ThursdayPA WireFormer Tory leader Sir Iain Duncan Smith said “speculating doesn't help” the investigation.
He told Times Radio: “Don't try and give some news interview in which you're able to tell everybody this is what you think.
“When you know this is not an Agatha Christie novel. This is real life, and this is a real murder. And let's just leave the police to get on with it.
“And then, when they're ready and they release the information, then we all know what happened.”
Former Conservative MP Harvey Proctor was among also those who criticised Mr Farage, telling The Times: “The police have expressly asked the public not to speculate about the motive.
“It is therefore deeply disappointing that Nigel Farage has chosen to do precisely that.”
The Guardian quoted an anonymous Labour minister who said: “We all want the police to have the space to do their job. MPs gobbing off rarely helps the police during an investigation.”
Police activity outside a house in Byrley Road, Rotherham, thought to be in connection with the Ann Widdecombe murder investigationPADavid Gauke, the former Conservative justice secretary, said people in public life “should know better than to speculate publicly”.
On Sunday, there was a substantial police presence at a house in Byrley Road in the Kimberworth Park area of Rotherham – an address linked to the suspect.
Assistant Chief Constable Matt Longman, of Devon and Cornwall Police, said on Sunday, before the case was apssed to terrorism officers, that the force is not looking for any other suspects.
He also urged against politicians and the public guessing what may have happened to Ms Widdecombe.
“We are aware of online and public speculation, particularly with regards to motive,” he said.
“Again, I urge people not to share or engage with that speculation – it’s unhelpful, it doesn’t aid our investigation, and particularly, it’s distressing to the family and friends of Miss Widdecombe.”
But the government’s independent reviewer of terrorism Jonathan Hall KC criticised the force’s decision to steer the public away from the idea that this was a terrorist case, as he spoke to Times Radio.
“I don’t know why they didn’t simply say they had an open mind as to the motivation. I think they probably broke one of the golden rules of investigations, which is not to comment on live investigations in case new facts emerge. So that aspect is slightly regrettable.”
Responding to Mr Proctor’s criticisms, Mr Farage told The Times: “Harvey was very close to Ann, I know he is upset, but I was really careful not to be political.
“I was very clear in what I said. I said I would not speculate as to whether it was someone with a grudge, someone with mental health problems or someone with political problems.
“I also said very clearly that I didn’t believe for one moment that it was a burglary that went wrong and I am 100% certain I am right on that.”