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At least three people have been killed and eight injured after a truck drove into pedestrians in a busy shopping area of central Stockholm, the Guardian reports referring to the local police.

Officers said one person had been arrested and they were treating the incident as terror-related. The prime minister, Stefan Lofven, said everything indicated it was “a terror attack”.

The source notes that the capital was immediately locked down as police set up barricades, suspended public transport and warned people to avoid the city centre. Police later evacuated the central train station close to where the attack took place.

The truck, a delivery vehicle belonging to the brewery Spendrups, was hijacked earlier in the day. The company confirmed it was stolen on Friday morning when a man jumped into the cab and drove it away.

Police also confirmed that shots were fired at another location, according to media reports. When the truck drove into the crowd, a man fled carrying a weapon, according to a reporter at the scene.

The source notes that in recent years, several hundred young Swedes have travelled to Syria to join Isis, making Sweden one of the main sources of European recruits to the Islamist group.

If the event is confirmed to be a terrorist attack, it will be the first in Sweden since an Iraqi-born Swedish man exploded two bombs in Stockholm in 2010, one of which killed him.