Police are treating the explosion as an act of terrorism.
Twitter accounts linked to Islamic State have used hashtags referring to the blast to post celebratory messages, with some users encouraging similar attacks elsewhere.
"It seems that bombs of the British air-force over children of Mosul and Raqqa has just came back to Manchester," one user named Abdul Haqq said on Twitter.
It was a reference to the Iraqi and Syrian cities held by the militants where a American-led coalition is conducting air strikes.
However there has been no official confirmation of ISIS taking responsibility for the attack.
Many of the gig goers were young female fans of primary school age, and police have confirmed the death toll includes children.
This morning, panicked parents were searching for their missing kids after the attacker detonated an IED at the venue.
Pictures of children and teens who attended the concert were being circulated on social media in a desperate bid to track them down.
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