The 59-year-old attacker, Jamil Tamimi, was jailed with a plea bargain that acknowledged he is mentally ill.
He killed 21-year-old exchange student Hannah Bladon “at random” after she offered her seat on a tram to an older woman.
Ms Bladon, a Birmingham University religious studies student, was part way through an exchange programme with the Hebrew University of Jerusalem.
Despite initial reports classing the murder as a terror incident, the prosecutor denied this was the case, according to Reuters.
Tamimi had hoped to commit suicide after engaging in the stabbing attack on 14 April 2017, but he was instead restrained by police and arrested.
“This was not a terrorist incident… this was a terrible murder carried out by a mentally ill person,” they said, according to a court transcript.
Ms Bladon’s relatives feel the sentence is too lenient.
Her family’s lawyer, Maurice Hirsch, told Reuters: “For the family, it makes no difference whether this was a terror attack or just another crazed murderer.
“They are outraged by the leniency of the sentence. They expected that Hannah’s murderer would spend the rest of his life behind bars.”
According to the court transcript, following sentencing Tamimi said: “I’m sorry. I wish I could take her place. I did not mean to murder her. I don’t know how it happened.”
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