A pedestrian and a policeman have died after a Palestinian gunman opened fire from his car in an attack in Jerusalem, Israeli police say.

Six other people were wounded in the attack that began at Ammunition Hill.

The gunman fired at a tram stop, then drove off. He stopped after a police pursuit and opened fire again, killing a policeman before being shot dead.

Prime Minister Benjamin Netanyahu praised the “very fast, very determined action of the Israeli police”.

The police said the attacker was a Palestinian from East Jerusalem.

The tram station is also close to a police headquarters.

The Jerusalem Post said the dead were a 60-year-old woman and a police special forces operative.