President Mahmoud Abbas on Wednesday condemned a bombing attack in central Jerusalem that killed one woman and injured dozens, the official Palestinian Authority news agency reported.

Salam Fayyad, the resigned caretaker prime minister, said in a statement, "I condemn in the strongest terms possible the terrorist attack in Jerusalem today regardless of who is behind it."

He also wished a speedy recovery to those who were injured.

An Israeli woman critically wounded when a bomb ripped through a bus in Jerusalem has died of her injuries, Israel's public radio reported, citing medical sources.

The explosion was caused a bomb attack, Israel's internal security minister said. "The bomb was inside a bag which was left at the bus stop," Yitzhak Aharonovitch told reporters at the scene.

The blast, which injured 20 people, hit the 174 bus as it stopped to pick up passengers at a stop between the central bus station and the ICC conference center, both of which lie at the western entrance to Jerusalem.

According to a statement from the Israeli military, two buses were hit with the explosion, which was named as a terrorist attack. The statement said one victim was in critical condition.

The explosion occurred shortly after 3:00 p.m. and shook buildings hundreds of meters away, witnesses said.

An AFP correspondent at the scene saw people lying on the floor covered in blood, and many cars and buses with shattered windows.

Sirens echoed through the city as dozens of ambulances and fire engines raced to the scene, with media reports taking of at least three people who were very badly injured.

No group has claimed the bombing, which comes amid a wave of violence in the region.