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(Image: DEPO PHOTOS/REX/SHUTTERSTOCK)

The explosion in the historic Sutlanahmet Square in Istanbul caused 10 deaths and a further 15 injuries, according to Turkish officials.

An unverified image circulated by the nation's media reportedly shows the moment of the blast next to an Egyption obelisk at the site.

Now the country's Prime Minister Ahmet Davutoglu says the killer was an ISIS jihadist and pledged his country would wage war on the terror group.

He said Turkey's forces would batter the militant group until it no longer "remains a threat" to Turkey or the world.

It comes as a report claimed one in ten Turks do not regard Islamic State – also known as Daesh – as a terrorist organisation.

And more than five per cent of the country agrees with the group's actions, the survey from Ankara-based Global Policy and Strategy says.

(Image: AP)

Investigations are being conducted into the type of explosive which caused the blast and those responsible, a statement from the Istanbul governor's office read.

Police in the Mediterranean city of Antalya also seized documents and CDs during a search of the premises where the suspects were staying, the Dogan News Agency has reported.

Traffic was prevented from travelling near the square – while authorities regain control of the area.

Body parts are said to have littered the bloody scene as ambulance sirens screamed and crowds rushed to flee the area.

Officials are working to see if any Brits were killed, Foreign Secretary Philip Hammond has said.

"In the meantime I offer my sympathies to the victims and their families and everyone else affected by the attack," he said.

(Image: REUTERS)

One woman, who works in an antiques store, said the explosion was "very loud".

She added: "We shook a lot. We ran out and saw body parts."

A German tourist named Caroline said: "The explosion was so loud, the ground shook. There was a very heavy smell that burned my nose.

"I started running away with my daughter. We went into a nearby building and stayed there for half an hour. It was really scary.

Office worker Erdem Koroglu told NTV television he saw several people lying on the ground.

He said: "It was difficult to say who was alive or dead.

"Buildings rattled from the force of the explosion."

One police officer said authorities were taking "precautions" against a second blast.

(Image: AP)

At least eight Germans, one Norwegian and a Peruvian were among the wounded, Turkey's Dogan news agency reported.

Dead bodies can be seen lying across the square in pictures from the scene in Istanbul.

The blast comes a year after a female suicide bomber blew herself up at a police station near the same square, killing one officer and wounding another.

Islamic State has targeted Turkey in the past, with two bombings last year blamed on the radical Sunni Muslim group.