Two people including a child were killed on Friday in East Jerusalem after a car rammed into a bus stop, Israeli authorities said.

"As a result of the ramming, there are two dead and another five injured," an Israeli police statement said.

Israeli police said the suspect was "neutralized on the spot" and described the incident as a "terror" attack.

The attack occurred in the East Jerusalem suburb of Ramot.

The Shaare Zedek hospital said those who died were six and 20 years old.

Footage circulated on social media showed a blue car that crashed into a pole in front of the bus stop in the area. 

An Israeli security official told Reuters that the attacker was a 31-year-old Palestinian man, a resident of Issawia in East Jerusalem.

A spokesman for the Islamist group Hamas, which is classified by the European Union a terrorist organization, called the attack a "heroic operation" and a "natural reaction to all the crimes of the occupation against the Palestinian people," but did not claim responsibility.

sdi/jcg (AFP, Reuters, dpa)