JERUSALEM, ISRAEL (BNO NEWS) -- Eight people were injured on early Monday morning when a nightclub was attacked in the Israeli city of Tel Aviv, officials said. The attacker has been arrested.

A 20-year-old resident of Nablus, located in the West Bank, began the attack by hijacking a taxi, ramming it against a police barrier and then going on a stabbing spree before being detained, police officials told the Ha'aretz Daily newspaper.

The attack occurred at around 1.30 a.m. local time after the suspect took a taxi in the Yaffo area of Tel Aviv and was driven to the old central bus station. After arriving at the station, the suspect attacked the driver, stabbing him in the hand and forcing him to exit the vehicle.

The taxi was then driven to Salame Street and crashed into a barrier which had been set up by the Israel Border Police, which were deployed to reinforce security at the Haoman 17 nightclub, which was holding a major summer event with more than 1,000 people attending.

Police and nightclub employees rushed to the crash site as they believed a drunk driver had gotten into an accident, but the driver came out shouting 'Allah Akhbar' (God the Great) and went on a stabbing spree. A police officer was able to tackle the suspect and authorities stopped the attack from escalating further.

Eight people were injured in the attack, most of them police and nightclub security personnel who attempted to detain the attacker. The taxi driver, meanwhile, sustained minor injuries. In addition, the attacker was also injured during a struggle with police and security personnel and was taken to the Wolfson Medical Center in Holon.

Police Commissioner Yohanan Danino told Israeli media that the attacker was soon released from the medical center and taken into custody, as police continue to investigate the case. Meanwhile, Tel Aviv District Commander Aharon Eksol described the attack as an 'act of terror.'

Defense Minister Ehud Barak and Internal Security Minister Yitzhak Aharonovitch praised security officials who were able to stop the attack. Aharonovitch described police as the "bullet-proof vest" for preventing attacks and underlined the attack could have been much worse.

Earlier this month, eight people were killed and more than 40 others were injured after a series of terrorist attacks in southern Israel. It led to increased violence in the Gaza strip, but it is not yet known whether Monday's attack was an act of terrorism.