At least two people, including a six-year-old boy, were killed, and five others injured when a driver deliberately rammed a car into a crowded bus stop in Jerusalem on Friday, authorities said.

The driver, identified as 31-year-old Hussein Qaraqe, was shot dead by a police officer at the site of the incident after the former ploughed his car into a crowd of people in east Jerusalem's Ramot neighbourhood, Israeli police and rescue officials said.

Qaraqe was a resident of the Isawiyah neighbourhood of East Jerusalem and held Israeli citizenship.

One of the deceased, identified as a 20-year-old yeshiva (religious seminary) student, was travelling to his parent's place with his wife at the time of the incident.

He was rushed to the Shaare Zedek Medical Centre in critical condition, where he succumbed to his wounds.

The couple got married two months ago.

"Just before Shabbat, our hearts are pained by the terrible news of a despicable terrorist who took the lives of a little boy and a young man in a car-ramming attack in Jerusalem. Together with the People of Israel I grieve with the families and pray for the recovery of the injured," Israeli President Isaac Herzog said.

Three injured people, including a child, are in critical condition, while two others are in moderate condition, according to the Magen David Adom emergency rescue service.

Prime Minister Benjamin Netanyahu directed units to be reinforced in the area and “investigations and arrests be carried out immediately in the terrorist's circle”, a statement by the Prime Minister's Office said.

Netanyahu also took immediate action to seal and demolish the terrorist's house, it said.

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