Leipzig fire chief Axel Schuh said 22 people were injured, two seriously. Aljazeera reported.
Approximately 40 firefighters and 40 paramedics are on the scene, along with two helicopters, Schuh said.
Police confirmed that a car had struck several people in the central Grimmaische Straße area before driving off.
The driver was later arrested "and there is currently no further danger emanating from him", according to police.
At about 17:35 (15:35 GMT), Radio Leipzig reported that police said the danger was over and that the area around the square had been cordoned off.