Hundreds attended the funeral of a baby killed after a Palestinian man slammed his car into pedestrians in Jerusalem.

"The parents are a young couple. They are Americans and they came to live here. He come to learn here in the Yeshiva (Jewish Seminary) and they have apartment here. And it took a few years after the marriage that born, at last after a long time, a small baby and you see, after three months, it happens such a tragedy," an uncle said.

Eight others were injured and the 21-year-old driver died in hospital after police shot him as he fled the scene.

Israeli police have called it a "terrorist attack", but no one's claimed responsibility yet.

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