Reports indicate that several people may have been hit by a vehicle at about the same time of the reported shooting.
The suspect then got out of the truck, yelled "Allahu akbar" and displayed a paintball gun and a pellet gun. The NYPD initially said: "We are responding to reports of shots fired in Lower Manhattan". The guy with the two guns, for some reason, was running around.
Witnesses tell WABC a man drove his pickup truck down a bike lane, striking multiple people. The driver was then shot by police after jumping out with what turned out to be two fake guns.
The NYPD, via live updates on Twitter, said a vehicle entered the West St. pedestrian bike path a few blocks north of Chambers St.in lower Manhattan.
Suspect hit a school bus and wrecked his truck.
At the moment, there is "no evidence to suggest a wider plot, a wider scheme", Gov. Andrew Cuomo said at the news conference. He says he saw the bodies of two men on the ground, their bikes mangled.
New York Mayor Bill de Blasio said: "It's a very painful day in our city".
The incident happened near both Stuyvesant High School and Borough of Manhattan Community College.
People on social media had posted messages about possible shots fired in the area as well as about a vehicle striking people, but it was unclear what had happened.
The incident occured shortly after 3 p.m. local time (1900 UTC) near West Side Highway and Chambers Street. Federal Bureau of Investigation agents are also on scene investigating the attack, which Mayor Bill de Blasio called an "act of terror".
US President Donald Trump was briefed on the incident, Sarah Huckabee Sanders, White House press secretary, said in a statement.
This story is developing.