The attack in the area near a popular gay bar and nightclub comes just hours before the city's Pride parade.
A shooting at a nightclub in Norway's capital Oslo which killed two
people and wounded 14 is being investigated as an act of terrorism,
police say.
People were shot at a number of places near the London Pub, a popular gay bar and nightclub in the city centre.
According to public broadcaster NRK, there are at least three crime scenes.
Police said that the suspect was arrested in a nearby street a few minutes later.
A spokesperson for Oslo police said the shooting is being investigated as an act of terror.
The arrested man is not co-operating with officers but his home has been searched, the broadcaster added.
Journalist Olav Roenneberg, from NRK, said: "I saw a man arrive with a bag, he picked up a gun and started to shoot.
"First I thought it was an air gun, then the glass of the bar next door was shattered and I understood I had to run for cover."
Prime Minister Jonas Gahr Støre described the attack as "a cruel and deeply shocking on innocent people".
Police to assess possible 'connection' to Pride
Oslo
is due to hold its annual Pride parade later on Saturday but police
spokesman Tore Barstad said it was not known whether this was connected
to the shooting.
"Police are in contact with the organisers of the Pride event this Saturday," he said.
"There
will be a continuous assessment of what measures police should take to
protect that event and whether this incident has a connection to Pride
at all."
Organisers of the Oslo Pride festival said there were
cancelling a parade set to take place on Saturday, following advice from
police.
In a post on the official Facebook page for the event,
they wrote: "Oslo Pride therefore urges everyone who planned to
participate or watch the parade to not show up.
"All events in connection with Oslo Pride are cancelled."
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