A car bomb has exploded in central Baghdad, killing at least two people and wounding several, police say.

The blast on Thursday morning scattered tangled metal and wreckage across Tahrir Square, a major intersection lined with shops and market stalls.

"We have received two dead and one wounded," said a medic at Kindi hospital.

A police officer at another hospital said four wounded had been admitted there after the blast.

At the scene, a column of black smoke rose into the sky and ambulance sirens wailed.

Firefighters hosed water on the gutted wreckage of several cars.

Target unclear

Police said the target of the blast was not clear.

"A four-wheel drive car went off as US military vehicles passed but the convoy wasn't hit," said Lieutenant Muhammad Salman of Baghdad police.

"It doesn't appear to be a suicide car," he added.

Witness Ahmad Sabah Abid said the driver of the car got out and ran away when the military convoy arrived at the square.

The blast occurred at around 8.30am (0530 GMT) and destroyed three cars. Iraqi police and US troops sealed off the area.

PHOTO CAPTION

A man looks at the scene of an early morning car bomb which exploded in Tahrir Square in central Baghdad, Iraq Thursday, Feb. 10, 2005. (AP)