A 17-year-old opened fire and wounded three people in a shooting at New York City's Times Square on Saturday, the New York Police Department said.

The shooting followed a dispute, an NYPD spokesperson said.

An 18-year-old woman's neck was grazed, while a 19-year-old man and a 65-year-old man's lower limbs were both injured. None of the injuries were life-threatening, police said.

The three victims were taken to New York City's Bellevue Hospital, where they were determined to be in stable condition.

"The perpetrator has been taken into police custody, and a firearm has been recovered," the spokesperson added.

The suspect has not been formally charged.

Saturday's shooting occurred on 44th Street and Seventh Avenue, an intersection in the middle of the city's heavily touristed theatre district.

Late last month, a gunman shot four people and then killed himself in a Manhattan skyscraper. (AFP)