A North East Ambulance Service spokesman said that they were contacted at 9.15am (0815 GMT) to say that a auto had mounted the kerb outside Westgate Sports Centre and hit a group of worshippers who had just attended Eid prayers.
"The 42-year-old local woman arrested by police has now been released on conditional bail pending further investigation". The woman is under police custody for questioning, Best added.
There are unconfirmed reports that one child was stuck beneath the auto. This attack was the latest in the line of deadly terror incidents, which have shaken the United Kingdom over recent months.
Among the injured are three adults and three children.
The MP said: "So sad, I was at the prayers earlier and there were so much joy and unity".
The incident unfolded just before 9.15am on Sunday with three children and three adults rushed to the Royal Victoria Infirmary.
"A woman was driving and the vehicle just drove into the people".
"Police inquiries continue as we try to establish the circumstances around the collision at Westgate Sports Centre on Sunday June 25", the force said.
"There has been an incident on Westgate Road, but we do not believe it is terror related".
Witnesses said prayers had ended but people were gathered in the auto park afterwards. "It is an accident as far as we can see", a police spokesperson told the Chronicle.
A host of emergency services were sent to the scene, including six ambulances and two paramedic rapid response vehicles.
Tensions are running high after a van crashed into Muslims leaving a mosque in Finsbury Park, North London, in a terror attack on Monday.