The explosion - which came hours after a pipe bomb went off in a garbage can in New Jersey - occurred in Manhattan's Chelsea neighbourhood at 23rd St. And 6th Avenue, a busy residential and commercial area frequented by tourists and city residents, around 8:30 pm (local time) yesterday.
President Barack Obama has been apprised of the explosion, a White House official said.
New York City Mayor Bill de Blasio said the number of people injured is now 29 but none is life threatening except for one who is in "serious" condition.
The Mayor described the explosion as an "intentional act" but said there is no evidence at this point of a terror link.
He said the city "experienced a very serious incident" and injuries are significant but added that there is "no evidence at this point of a terror connection" even as early indications suggest "this was an intentional act".
"There is no specific and credible threat at this time from any terror organisation", he said.
New York City new Police Commissioner James O Neill, who had his first day at the city's police chief yesterday, that the "exact cause of the explosion has not yet been determined" and personnel from the police department, FBI, bomb squad and counter-terrorism departments are on the scene.
The New York Police Department said a "possible secondary device" has been located at 27th Street, 6th-7th Avenues.
Citing local and federal law enforcement officials, CNN reported that the device found at the second spot appears to be a pressure cooker with wires hanging out.
Police said investigations are ongoing and advised people to avoid the area.
As a "precautionary measure" residents living in the 27th street between 6th and 7th avenues to "stay away" from windows facing 27th street "until we clear the area of a suspicious package", they said, adding this is a precautionary measure only and they are not evacuating the area.
"We are not going to let anyone change us, intimidate us," the mayor said.
Authorities said "extensive search" is being conducted in the area and the neighbourhood and ruled out gas as the reason for the explosion.
Security is already tight in the city as nearly 190 world leaders, including Obama, will arrive in the city for the about week-long high-level annual UN General Assembly session, beginning tomorrow.
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