Indonesian police have found hundreds of books containing Daesh propaganda targeting children at the home of a suspect arrested in connection with the stabbing death of an officer, Bangkok Post quoted a police spokeswoman as saying on Monday.

Another suspected militant was shot and killed by police during Sunday's attack on a police station in Medan, the capital of North Sumatra province.

The wife of the arrested man told police her husband had spent six months in Syria in 2013, said police spokeswoman Rina Sari Ginting, adding this was still being investigated.

Police believe the men were part of Jemaah Ansharut Daulah (JAD), an umbrella organization on a US State Department "terrorist" list which supports Daesh and has hundreds of Indonesian followers.

"We can see from the pattern of their attack that it is likely they belong to the JAD network," said Ginting.

There is concern about a rise of militancy in Indonesia, which has the world's biggest Muslim population.

The books aimed at children found at the home of the arrested man were written in Indonesian and included pictures and messages supportive of dying in jihad, or holy war, Ginting said.

They appeared to be designed and printed by the suspect, she said.

Police believe the suspects had intended not only to kill police during Sunday's knife attack but also to seize their guns.

Police were also investigating whether the attackers were linked to three suspected militants who were arrested on June 6 in the area by anti-terrorism police.