Israeli police have shot and killed a Palestinian man after he rammed a vehicle into a crowd at a bus station, injuring several people in what authorities are calling a suspected terror attack.

A ramming attack at a bus stop in northern Israel on Thursday injured seven people, one of them critically, Israeli medics said.

In northern Israel, a car drove into people waiting at a bus stop. As a result of the incident, ten individuals were injured. The police arrested the suspect and believe it may have been a terrorist attack.

Israel was expected to free more than 600 Palestinian prisoners in exchange for the bodies of four Israeli hostages by Hamas, five days after Israel halted prisoner releases in protest over Hamas shows of force.

Hamas handed over the bodies of 4 Israeli hostages while it waited for hundreds of Palestinian prisoners to be released by Israel.