New York: Injured suspect held after attempted terror attack at Port Authority Bus Terminal

Emergency services near Times Square. Credit: PA

A bungled explosion that sparked mass evacuations during rush hour in central Manhattan was an attempted terror attack, New York City Mayor Bill de Blasio has said.

The NYPD said the incident happened 7.20am (12.20pm GMT) inside a subway passageway between West 42nd Street and 7th and 8th Avenues.

Police said the suspect was carrying an improvised explosive device, believed to be a crude pipe bomb, which he intentionally detonated.

New York City police commissioner James O'Neill named the suspect in the explosion as 27-year-old Akayed Ullah, who has since been taken into custody.

Mr O'Neill also called the attempted subway pipe-bombing in a passageway near the Port Authority Bus Terminal as a "terror-related incident".

Mayor de Blasio said all of the victims had suffered minor injuries.

"Thank God the perpetrator did not achieve his ultimate goal," he said.

Security video shows the suspect casually walking through the crowded underpass as a small explosion occurs, sending off a plume of white smoke and scattering commuters.

As the smoke clears the would-be bomber lays crumpled on the ground.

An image circulating of suspected bomber Akayed Ullah.

The suspect sustained burns to his abdomen and hands and cuts in the explosion.

The Associated Press, citing a law enforcement official, reported the man had an explosive device strapped to his body with Velcro and zip ties.

A senior law enforcement official confirmed to NBC News that Ullah told investigators he had attempted the attack in the name of ISIS

The incident brought central Manhattan to a standstill. Credit: PA

The NYPD cleared three underground subway lines and shut roads in central Manhattan as officers responded to reports of a blast at 42nd Street and 8th Avenue, close to the US city's tourist mecca Times Square.

People were seen streaming out of the bus terminal and subway hub, which is the biggest in the US, in an orderly fashion as NYPD officers patrolled the street.

The subway system has since reopened with heightened security city-wide.

Metropolitan Transportation Authority Chairman Joseph Lhota said trains on the Seventh and Eighth Avenue lines were still bypassing the Times Square corridor as the investigation proceeds.

NYFD firefighters stand on the street near Times Square. Credit: PA

White House press secretary Sarah Huckabee Sanders said President Donald Trump had been briefed on the incident.