Israeli police forces and Shabak tracked down an Israeli Arab who is accused of killing two people outside a popular bar in Tel Aviv.

Seven people were also wounded, four of them seriously, when the man opened fire with an automatic rifle, letting off at least 15 shots before fleeing the scene, the BBC said.

The incident took place in Dizengoff Street, a busy part of the city centre filled with bars and cafes.

Police spokesman Micky Rosenfeld said on Friday: "From what we know until now and as part of the ongoing investigation, there's a strong possibility that it was in fact a terrorist attack."

Security camera footage showed the gunman taking a weapon out of his backpack and then shooting at people in the street.

The two killed Israelis have been identified as Alon Bakal, 26, who was a manager at the bar targeted, and Shimon Ruimi, 30.

The suspect, a 29-year-old Israeli Arab from northern Israel, was identified as Nashaat Mohamed Melhem.

Source: MENA