Two elderly women have been stabbed in what the police are calling a terror attack in Jerusalem's Armon Hanatziv neighborhood.

The two suspects arrested in the wake of the attack were subsequently releaed, Israel Police announced on Tuesday.

According to police, five women aged in their 70s had gone for a walk in the neighborhood, also known as East Talpiot, on Tuesday morning when they were attacked by two masked individuals.

Open gallery view A woman arrives at the hospital after being wounded in Jerusalem, May 10, 2016. Credit: Emil Salman

One of the women sustained stab wounds to her limbs and upper body, while the other sustained wounds to her upper body.

The assailants fled the scene in what appeared to be the direction of neighboring Jabal Mukaber and police opened a chase, erecting road blocks in the city. Two suspects were arrested, but they were released after a thorough investigation of them removed all suspicion that they had been involved in the attack, the police spokesman's office announced.

Police are still searching intensively for the assailants, the office added.

Medics who arrived at the scene reported that the women were fully conscious and in light to moderate condition. They were evacuated to the Shaare Zedek Medical Center in Jerusalem.