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Eight people were injured after a car ploughed into pedestrians outside Amsterdam's central train station.

The dramatic incident unfolded in a pedestrian area and sparked panic in one of the Dutch city's busiest areas.

Witnesses posted photos and video online showing victims being treated as they lay on the floor near the Peugeot car moments after the driver was arrested.

The car ploughed into people when the driver entered an area where vehicles are banned and began to drive away as officers approached.

Police said it appeared the driver fell ill and they do not believe it was an intentional act.

(Image: ANP) (Image: ANP)

Police said it was not a terrorist attack, addressing fears expressed by witnesses and speculation on social media.

After ploughing into pedestrians the car smashed into a concrete barrier and came to a stop with a shattered windscreen.

The driver was arrested and taken away for questioning as officers at the scene searched the car with a dog.

Police said two of the eight victims were taken to hospital with serious injuries when the incident happened at about 9pm local time on Saturday night.

Officers continued to investigate why the car was in a restricted area.

Witness Moiko Schraa told RTL Nieuws: "I heard a thud. Then I turned around and I saw a car. Within 30 seconds the area was completely full of police.

"The man was immediately removed from the car. It was quick."

In the immediate aftermath one witness wrote on Twitter: "Someone just ran into 10 people near Amsterdam Central Station, exactly where my exchange group was.

"Who would have known what could have happened if we decided to show up a few minutes later."

The train station stayed open following the incident and trains were not affected, although an entrance near the crash site was closed.

Tram traffic resumed about an hour later.