Three children were injured as a result of the collision which police said is not believed to be terror-related.
A 42-year-old woman has been arrested.
Emergency services were dispatched to the site of the collision on Westgate Road, near Westgate Community College, shortly after 9am this morning
A police spokesperson said: "On Sunday June 25, at approx 9.14am Northumbria Police received reports that a vehicle had collided with pedestrians outside of Westgate Sports Centre, Newcastle upon Tyne.
Five people were injured when the car crashed into crowds (Photo: @Riskyy_Abz/Twitter)
The crash happened at the end of Eid prayers (Photo: @Riskyy_Abz/Twitter)
Footage has emerged of a Nissan car reported to have struck pedestrians (Photo: @Riskyy_Abz/Twitter)
"Police inquiries are ongoing to establish exactly what happened but, at this time, it is not believed to be a terror incident.
"Emergency services are currently at the scene and five casualties have been confirmed.
"Police have arrested a 42 -year-old woman who is currently in police custody.
"Any witnesses or anyone with any information please contact Northumbria Police on 101 quoting reference number 277 25/06/17."
The crash happened outside a sports centre (Photo: @krisgee84 Follow More/Twitter)
North East Ambulance service said six people had been injured with three children among them which was later confirmed by police.
One man told how crowds of worshippers had just finished Eid prayers when the crash unfolded.
He said: "We were finishing the prayers and people were standing in a corner.
"The car was going on and people tried to stop the car. There were many injured people, two seriously."
Asif Anwar added: "It was chaos, everyone was panicking people just don’t know what is going on these days."
Police at the scene in Westgate Road, Newcastle (Photo: Chronicle live)
Police on the scene in Westgate Road, Newcastle (Photo: Chroniclelive WS)
Magdalena Lukasha was near the sports centre with her family at the time of the smash.
She told The Chronicle : “There were lots of children there, people were gathering for prayers for Eid. My husband said he saw the car hit around six or seven people.”
Another eyewitness said: "This was the Eid celebrations, the end of Ramadan. It was the end of prayers we were greeting each other.
"A woman was driving and the car just drove into the people. The car was going on, people tried to stop the car.
"There were many injured people, around six or seven including a child who was about 10-years-old. Two people were very, very seriously injured."
The police helicopter has been scrambled and there are reports of armed police on the scene.
In a statement, Newcastle Central Mosque said over 100 worshippers helped police and emergency services as it prayed the injured would make a full recovery.
It said: "Immediately after the Eid prayers when the people were starting to leave the venue, a car collided with pedestrians.
"The injured were immediately attended to by the emergency medical services and the police. All the injured have been taken to the hospital. We pray and hope that all those affected recover soon fully.
"We thank the emergency medical services, the police and over 100 volunteers from the mosque for their quick response to the incident.
"We were able to clear the area promptly ensuring there was no delay in the injured being attended to.
"We urge everyone to please pray for all those affected.
"The police are investigating the incident at the moment and we will give an update as soon as we have more information."