The Haaretz daily said on its website that crime boss Ya'akov Alperon was killed in the blast, which was set off by remote control, and that two bystanders suffered minor injuries.
A local police spokesman confirmed the attack on Namir Road to RIA Novosti, but not the victim's identity. He denied an earlier report that a bus had exploded.
Haaretz said one of the casualties was a 13-year-old boy waiting for a bus, and that the other was a passenger in a car behind Alperon's vehicle.
The bomb is believed to have been set off by criminal rivals of the mafia boss.
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Some people are trying to make the reality in Russia at least a bit more humane. The amnesty should apply not only to persons involved in high-profile cases, but also to individuals who are not as well-known. It is better to set free at least some of the individuals who deserve to be released than no one at all.