Two people have been killed after part of a building housing a multi-storey parking lot collapsed in northern Tel Aviv.

Eighteen people were injured and six to 12 people trapped in the collapsed building, Haaretz reported. Police subsequently said they were searching for seven people believed to be trapped.

Eli Bin, director of the national rescue service, said one person was in serious condition with head injuries, according to AP.

According to local media reports the collapse may have been caused by the fall of a construction crane.

Lior Teherani, a fire official, told Channel 10 TV that the incident began with the collapse of a multi-level underground parking garage being built at the site. He said that brought down a crane, which then caused part of a building to collapse as well.

The incident took place on Habarzel Street in Tel Aviv's Ramat Hahayal neighborhood. Rescue services are reportedly attempting to enter the site to rescue those trapped.

The Israeli military said it was dispatching search-and-rescue forces to assist in the rescue operation.