THREE people have been injured after a gunman opened fire in Times Square, police said.

Footage showed panicked crowds fleeing the tourist spot in New York as cops swarmed a vehicle.

Police told The Sun that gunfire erupted at 1.20am after a “verbal dispute between two people escalated”.

A 65-year-old man and a 19-year-old man suffered gunshot wounds – while an 18-year-old woman was rushed to hospital with a wound to her neck.

A police spokesperson said: “All were taken to Bellevue Hospital and are in stable condition.”

Cops confirmed a suspect was arrested at the scene near 44th Street and 7th Avenue.

Witnesses described seeing bullet holes on the windows of a car.

Footage showed one person on a stretcher being wheeled into an ambulance as cops sealed off the scene.

Another clip showed crowds fleeing outside the Hard Rock Cafe after gunshots rang out.