Police described the incident in Raanana, north of Tel Aviv, as a terrorist attack and said two suspects were under arrest. The two are from the same family in Hebron, a city in the occupied West Bank, and entered Israel illegally, police said.

"They went out together and in parallel, to two different locations, took two cars and launched a series of rammings," central district police chief Avi Biton told reporters in Raanana, a city north of Tel Aviv where the incident took place.

There was no immediate claim of responsibility.

At least one of the vehicles had been stolen, police said earlier.

Israeli TV showed scattered personal items on a pavement and said several children were among the injured.

(Reporting by Emily Rose and Dan Williams; Editing by Kate Holton, William Maclean)

By Rami Amichay