A LOUD blast has been heard inside a New York bus terminal with reports of a stampede as people rushed from the area.

Police have said they are responding to reports of an “explosion” at the Port Authority Bus Terminal, close to Times Square, in Manhattan and are evacuating people.

Several people were injured after a device partially exploded inside a tunnel, the New York Post reports.

An officer reportedly told CBS News that cops are looking at a possible suicide bomber, although the situation is said to be “fluid”.

The bomb squad has been pictured at 42nd Street and 8th Avenue where the blast was heard amid reports of a possible “pipe bomb”.

It has been reported that one man has been taken into custody but police have yet confirm this.

Cops fire crews and paramedics are on the scene and the city’s mayor is being briefed.

Port Authority Bus Terminal is the largest in America with more than 65million people passing through each year.