One person has died and several people injured following a suspected terror attack on a tram in the central Dutch city of Utrecht.

The shooting began at 10.45am local time (9.45am GMT) when a gunman opened fire on a tram at 24 Oktoberplein, a square in the west of the city. 

Police and three air ambulances swooped on the area, which was cordoned off following the shooting on Monday.

Local media reports that the gunman fled the scene. Heavily-armed police were later reported to have opened fire on a house near to the square.

Authorities have urged people to stay away from the scene and schools to keep their doors closed. 

Utrecht Police said the force was considering the possibility of a "terrorist motive".

The Dutch government raised the terrorism threat level to the highest possible in Utrecht after the attack. 

The National Anti-Terrorism Coordinator said it had raised alert level as the suspected shooter was still at large.

Security was increased at schools, mosques and transportation hubs after the shooting.

A police spokesman told Reuters: "Several shots were fired in a tram and several people were injured.

"Helicopters are at the scene and no arrests have been made." Read more at Standard