A Palestinian suicide bomber killed himself and three other people, as well as wounding around 20 tonight in Rishon Letsion on the southern outskirts of Tel Aviv, Israeli public television said.
Local police chief Mr Yehuda Bakhar confirmed the death of one person, as well as the bomber. Two of those wounded were said to be in serious condition, a medical source added.
A television report said the bomber struck a pedestrian mall with a powerful explosive charge that he was carrying.
The attacker was apparently attempting to make his way into one of the cafes in the center of the town, but failed to do so.
Police said they had given chase to a vehicle they thought had dropped the attacker off in the area.
Numerous ambulances were dispatched to the scene. The town's fire chief, Mr Yaacov Shani, said the attack occurred "near the Bank Discount ... and there are dozens of victims."
Only two weeks ago, a suicide bomber struck Rishon Letsion, leaving himself and 16 others dead and 55 wounded. That blast was claimed by a telephone caller who said he represented the Ezzedine al-Qassam Brigades, the armed branch of the radical Hamas movement.
Israeli government spokesman Daniel Seaman told CNN that no matter who claims responsibility for the latest attack, the Palestinian Authority of Yasser Arafat is ultimately responsible.
The bombing follows the killing of three Palestinians, one of whom is reported to be a militant, in an attack on the Balata refugee camp outside Nablus.
The Israeli army said one of the dead, Mr Mahmoud Titi was as a "senior terrorist" responsible for many attacks against Israelis.