Shooting attack kills three in Tel Aviv

"The death has just been determined of three persons," said a statement from Ichilov hospital, near the complex across the street from Israel's defence ministry and main army headquarters.

"We are talking here about a pretty serious terrorist incident," Tel Aviv police chief Chico Edri told reporters.

"Two terrorists arrived at the complex and while firing and to our regret nine people were injured to different degrees.

"Of the two terrorists, one was arrested and the other wounded by gunfire," he said.

"The weapons they were carrying have been seized... we do not know of another terrorist at large and so from our point of view people can return to their normal lives."

There were no immediate details identifying the attackers or victims.

Violence since October last year has left 205 Palestinians and 28 Israelis dead, according to an AFP count.

Most of the Palestinians killed were carrying out knife, gun or car-ramming attacks, Israeli authorities say. Many have been young Palestinians, including teenagers.