Two gunmen infiltrated a rabbinical seminary and opened fire near Jerusalem today, killing at least eight, police and rescue workers said.
Israeli media said about 35 people were wounded.
Ambulances raced to the scene from around the city. Media reports said many people were wounded, Hundreds of police surrounded the area and searched the campus.
The gunmen entered a dining hall where about 80 people were gathered, witnesses said, and opened fire.
"There are at least seven killed and 10 people wounded," said Eli Dein, director of Israel's rescue service.
The seminar is the Mercaz Harav yeshiva in the Kiryat Moshe quarter of Jerusalem, a well-known centre of Jewish studies identified with the leadership of the Jewish settlement movement in the West Bank.
Jerusalem police spokesman Shmuel Ben Ruby said, "One or two terrorists infiltrated the Mercaz Harav seminary and opened fire in all directions. One terrorist was killed in an exchange of fire, and apparently he had an explosives belt."
He said students were being evacuated from the building.
There were no attacks by Palestinian militants in Jerusalem during 2007, though police and the military claimed to have foiled many attempts.
Between 2001 and 2004, at the height of Palestinian-Israeli fighting, Jerusalem was a frequent target of Palestinian attacks, including suicide bombings on buses.