US media have claimed Sayfullo Habibullaevic Saipov, 29, was taken into custody following the devastating incident near New York’s World Trade Centre building.
After ploughing into pedestrians he is reported to have screamed “Allahu Akbar”.
Police confirmed his shouts as he left his vehicle were “consistent” with a terrorist attack.
Saipov is reportedly from Uzbekistan and travelled to the US in 2010.
At the time of his arrest, he is believed to have been carrying a Florida ID card which listed his address in Tampa.
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However, sources close to the investigation have claimed the man may have been staying in New Jersey before mounting the pavement with a rented Home Depot truck and unleashing chaos in lower Manhattan.
He is believed to have hit a school bus in the incident, injuring two adults and two children.
Saipov is currently in surgery and is expected to survive his injuries which were sustained after police shot him to bring an end to the carnage.
He was armed with two weapons and began running before officers opened fire. The weapons later turned out to be imitation firearms.
New York City Mayor Bill de Blasio has since described the attack as a “cowardly act of terror aimed at innocent civilians”, while President Trump described the alleged suspect as “sick and deranged” and sent out his “condolences and prayers to the victims and families of the New York City terrorist attack”.
Witnesses reported hearing gunshots near Stuyvesant High School, a top-ranked public New York City school, at around 3pm local time on Tuesday afternoon which was later revealed to be a uniformed police officer as he took down the attacker.
Bodies were pictured lying on the ground outside the school in what police are now treating as a terror attack.
President Trump tweeted: “In NYC, looks like another attack by a very sick and deranged person. Law enforcement is following this closely. NOT IN THE USA!”
He later followed the tweet with: “We must not allow ISIS to return, or enter, our country after defeating them in the Middle East and elsewhere. Enough!”
It is not yet clear whether the attacker had any links to Islamic State.
In the UK, Prime Minister Theresa May said she was “appalled by this cowardly attack” in New York City, adding her “thoughts are with all affected.”