A suicide bomber detonated an explosive device near the Checkpost Junction in Haifa just after 7:30 A.M., Israel Radio reported.
Police and emergency personnel are at the scene of the attack. Police have closed off the area to traffic and sappers are searching for additional explosive devices.
Eight people suffered light-to-moderate injuries in the blast.
Army Radio reported that the suicide bomber was in serious condition, but had not been killed by the blast.
Northern Police commander Yaakov Borovsky said that the bomber wanted to detonate the device at the junction itself, but because of the large police presence in the area he did so at a side street. He also said that a large number of police were deployed in the area because of an alert for a terror attack.
The blast caused a small fire to break out which firefighters have extinguished.