Up to six others have been injured in the shooting
Four people have died following a mass shooting in the centre of Tel Aviv, according to Israeli police.
Up to six others have been injured in the attack, which took place at a popular shopping centre near the country's defence ministry and army headquarters.
A police commander said two Palestinian gunmen from the West Bank were behind the "harsh terror attack", and both were "neutralised" at the scene.
One of the alleged attackers was arrested, and a doctor has told Sky News that the other suspect is in a stable condition after being taken to hospital for treatment.
Local reports suggest one of the gunmen had been disguised as an ultra-Orthodox Jew.
It is believed the two suspects are cousins in their 20s and had been eating at one of the restaurants near the Sarona shopping complex when they opened fire.
A director at the crowded market said security guards managed to avert a bigger disaster by stopping the attackers from going inside.
One woman said she was celebrating her son's birthday when she heard gunfire and "immediately understood it was a terror attack".
She told Channel 10: "We ran like lighting with the baby and the stroller ... I yelled at people who didn't understand what was happening to run."
Since October, 31 Israelis and two Americans have been killed in attacks allegedly carried out by Palestinians.
About 200 Palestinians have been killed over this eight-month period, with Israel identifying most of them as attackers.
Israel's Prime Minister, Benjamin Netanyahu, has met with security officials at the defence ministry since Wednesday evening's attack.
The US has condemned the attack as "cowardly".