“All possible angles are being investigated,” Luba Samri, a police spokeswoman, said. “Large-scale police forces are conducting searches for him.”
According to Israel media, the suspect was identified as an Israeli Arab, and security officials believe the shooting may have been a terrorist attack.
The casualties were taken to Ichilov Hospital in Tel Aviv. Two of the wounded are thought to be a in serious condition.
The two dead were identified as Alon Bakal, 26, manager of the bar, and 30-year-old Shimon Ruimi from the southern Israeli city of Ofakim.
It is thought that about 30 shots were fired during the attack.
Police are conducting a house to house search for the gunman and have cordoned off areas of the city.
