One young Israeli woman was killed and another wounded in a terrotr attack on a nightclub in Istanbul on New Year.

Leann Nasser, 18, from Tira, a predominantly Arab-Israeli town in central Israel, was originally missing and later found in an Istanbul hospital where she was pronounced dead.

At least 39 people were killed and 70 others wounded when an assailant believed to have been dressed in a Santa Claus costume opened fire inside the crowded nightclub.

Leannn was one of the four Israeli women among the revelers at the Reina nightclub who fell victim to the attack, with another wounded and one suffering from shock. The fourth was unharmed.

Early reports claimed multiple gunmen were involved, one possibly disguised as Santa Claus.

One assailant shot a police officer and a civilian as he entered the nightclub, one of Istanbul's most iconic, popular with locals and foreigners alike, before opening fire at random inside. Some reports suggested there were multiple attackers.

"A terrorist with a long-range weapon ... brutally and savagely carried out this attack by firing bullets on innocent people who were there solely to celebrate the New Year and have fun," the Istanbul Governor said.