Two men have been injured after a shooting erupted following a dispute at an iconic steakhouse in New York, police have said.

Officers responded to reports of a shooting at the Peter Luger Steak House in Brooklyn at around 9.45pm on Thursday, the New York Police Department (NYPD) said in a statement.

Investigators discovered that a 24-year-old man and another man who were dining inside the restaurant had become engaged in a “verbal dispute”.

The 24-year-old male then left the restaurant stood outside on the pavement and began to shoot in the direction of the building, police said,

As the suspect opened fire, two men who were sitting in the outdoor eating area were hit.

A 57-year-old victim suffered a gunshot wound to the stomach, police said, while another 30-year-old man was hit in the shoulder.

Both men were transported to Bellevue Hospital in stable condition and are expected to survive their injuries.

The 24-year-old male fled the location on foot and police canvassing the area following the incident apprehended the suspect, police said.

The New York Post first reported the incident and said that police managed to arrest the suspect with the aid of a family member. A firearm was recovered from the sidewalk, an NYPD spokesperson said.

The NYPD said that an investigation into the incident is ongoing and charges against suspect are pending at this time.

Peter Luger’s opened in 1887 and quickly became “a neighborhood favorite in predominantly German Williamsburg,” according to its website.

The Independent has contacted the restaurant for comment