A day of jubilation turned into chaos in Liverpool on Monday as a car deliberately drove into crowds celebrating the city’s Premier League title win, injuring at least 27 people.

Merseyside Police have arrested a 53-year-old local man in connection with the incident and confirmed it is not being treated as an act of terrorism.

“We believe this to be an isolated incident, and we are not currently looking for anyone else in relation to it,” said Merseyside Police Assistant Chief Constable Jenny Sims at a press briefing.

“The incident is not being treated as terrorism,” she added.

The crash took place at around 6:00 pm local time near Water Street, shortly after Liverpool's open-top victory bus passed the area.

An AFP journalist on site reported several victims being carried away on stretchers, though the full extent of the injuries is still unknown.

"It was extremely fast," said Harry Rashid, 48, who was attending the parade with his wife and daughters.

"Initially we just heard the pop, pop, pop of people just being knocked off the bonnet of the car. It was horrible and you could hear the bumps as he was going over the people."

Another eyewitness, Mike Maddra, said, "The car turned left, mounted the pavement, came towards us and ran towards the buildings. We got out the way and it was speeding up."