Ammunition Hill Jerusalem attack
Israeli policemen inspect a wrecked car after it rammed a group of pedestrians on near the light rail train station near Ammunition Hill. Getty Images

A three-month-old baby girl has died of the injuries sustained in what Israeli police believe was a terrorist attack in Jerusalem.

Another eight people were injured, as a car ran over commuters waiting at the Ammunition Hill light rail train station in the city.

Police spokesman Micky Rosenfeld said the driver was shot by security forces as he attempted to flee from the scene.

Rosenfeld said there was "a strong possibility that it was a terror attack", adding the alleged attacker was already known to authorities and had a record for security related offences. He was being treated at a local hospital with moderate to serious wounds.

In an online video purportedly showing the incident, a vehicle is seen diverting from the main road at high speed, to then hit people waiting for the train.

Security was stepped up across Jerusalem as Prime Minister Benjamin Netanyahu claimed Palestinian President Mahmoud Abbas was responsible for the attack.

"Just a few days ago [Abbas] incited to an attack on Jews in Jerusalem," Netanyahu said.

On Friday 17 October, Abbas urged Palestinians to use "any means" to keep settlers away from the Temple Mount.