A little-known group calling itself the Imad Mughniyeh unit of the Brigades of the Liberators of the Galilee claimed responsibility for a deadly attack in Jerusalem on Wednesday in a phone call to AFP.

The same group claimed an attack in March on a Jewish seminary in Jerusalem that killed eight people, which they said was revenge for the killing of senior Lebanese Hizbullah commander Imad Mughniyeh in Damascus.

Hizbullah blamed Mughniyeh's death on Israel and has vowed revenge.

Israel welcomed Mughniyeh's death but denied any responsibility.

In Wednesday's attack a Palestinian man from east Jerusalem ploughed a bulldozer into a bus and a car in central Jerusalem, killing at least two people and wounding several others before he was shot dead by Israeli police.(AFP)