A gunman believed to have been dressed in a Santa Claus costume has opened fire at an Istanbul nightclub during New Year celebrations, killing at least 39 people - 16 of them foreigners - and wounding scores of others in what the province's governor described as a terror attack.
Vasip Sahin said the attacker, armed with a long-barrelled weapon, killed a policeman and a civilian outside the popular Reina nightclub in the city's Ortakoy district before entering and firing on people partying inside.
He did not say who may have carried out the attack.
"Unfortunately (he) rained bullets in a very cruel and merciless way on innocent people who were there to celebrate New Year and have fun," Mr Sahin said.
Interior minister Suleyman Soylu said the attacker was still at large and 69 people were being treated in hospital following the shooting.
News reports said the gunman entered the club at 1.45am local time, dressed in a Santa Claus costume.
Some customers jumped into the waters of the Bosporus to escape the attack, it was reported.
NTV television said the assailant may still be inside the nightclub.
The attacker is believed to have shot at police outside the nightclub before entering and firing on people inside.
Police in riot gear and machine guns, backed up by armoured vehicles, blocked the area close to the club, one of the most popular nightspots in Istanbul, in the heavy rain.
Several ambulances flashing blue lights arrived on the scene, some taking wounded to local hospitals.
Around 600 people were celebrating New Year's Eve at the nightclub and revellers fled the scene after the attack.
The club is near the scenes of recent suicide attacks that killed dozens near a football stadium.
Istanbul had already been under heavy security surveillance during the festivities, with police mounting machine guns and armoured vehicles on the streets.
Security measures had been heightened in major Turkish cities, with police barring traffic leading to key squares in Istanbul and the capital Ankara.
In Istanbul, 17,000 police officers were put on duty, some camouflaged as Santa Claus and others as street vendors, state news agency Anadolu said.
Ankara and Istanbul have been targeted by several attacks in 2016 carried out by the Islamic State terror group or Kurdish rebels, killing more than 180 people.
Eyewitness Sinem Uyanik said she saw several bodies inside the nightclub and her husband Lutfu Uyanik was wounded in the attack.
"Before I could understand what was happening, my husband fell on top me," she said outside Istanbul's Sisli Hospital.
"I had to lift several bodies from on top of me before I could get out."
Her husband's condition was not said to be serious.
The White House condemned the "horrific terrorist attack" and offered US help to Turkey.
Spokesman Eric Schultz said President Barack Obama, who is on holiday in Hawaii with his family, was briefed on the attack by his national security team.
White House National Security Council spokesman Ned Price said the attack on "innocent revellers" showed the perpetrators' savagery.
Mr Price sent thoughts and prayers to the relatives of those killed, adding that the US supported its Nato ally Turkey as both countries battle terrorism.
Justice minister Bekir Bozdag vowed that Turkey would press ahead with its fight against violent groups.
"Turkey will continue its determined and effective combat to root out terror," Mr Bozdag said on Twitter.
Mr Soylu said the gunman was still on the run and "efforts to find the terrorist are continuing".
"Our security forces have started the necessary operations. God willing he will be caught in a short period of time," he said.
Five of the dead were identified as Turkish nationals and authorities were still trying to identify 18 others.
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