Two civilians were injured in a car ramming attack in Jerusalem on Monday morning, Israeli police said, adding that they had arrested two suspects after an hours-long search.

The incident occurred on Techelet Mordechai street in Jerusalem on a day when Israeli Jews marked the start of the Passover holidays.

"A short time ago, a report was received that two civilians had been run over on Techelet Mordechai Street in Jerusalem, resulting in minor injuries," the police said in a statement.

"Two terrorists fled the scene on foot and an improvised weapon... was found on their escape route," it said.

Medics from the Magen David Adom emergency service said the two injured were aged 18 and 22.

Footage from security cameras posted on several Israeli news websites showed a white car ramming into a group of people at a street corner.

The car later hits another parked vehicle after which two men step out, with one of the assailants seen attempting to fire a gun.

Seconds later, the two are seen walking away from the site.

Hours after the incident, the police said two men had been arrested, without providing details of their identities.

After an extensive search, the security forces were "directed to a closed business where the two terrorists were found hiding," a separate statement by the police said.

Several car ramming attacks have been reported since last year in a number of Israeli cities and in settlements in the occupied West Bank.