A Palestinian stabbed several people on a bus in central Tel Aviv before he was chased down, shot and arrested.
Israeli police spokesman Micky Rosenfeld said they believe it was a “terror attack”.
He said the assailant fled the scene after carrying out the attack this morning.
He did not know how many people were stabbed or what condition they are in. Israeli media said 10 people were hurt, including three seriously.
Mr Rosenfeld said officers chased the attacker down and the man was shot and lightly wounded before being apprehended.
Over the past few months, about a dozen people have been killed in Palestinian attacks, mostly in Jerusalem, though there have been other attacks in Tel Aviv and the West Bank.