AT least four people are dead and 15 have been injured in a horror shooting in Jerusalem.

The deadly attack happened when gunmen boarded a busy bus and opened fire, according to reports.

A spokesperson for Israeli Police told the country's media that "two terrorists have been neutralised" following the shock attack.

The horrifying incident unfolded at a busy intersection in the north of the city, on a road that leads to settlements in east Jerusalem.

Paramedics have confirmed that at least four people were killed in the shooting.

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