Islamic State claimed responsibility for Monday's deadly attack at the Manchester Arena and said it was carried out with an explosive device planted at the concert, according to a statement the group posted on Telegram, Reuters reported.

"One of the soldiers of the Caliphate was able to place an explosive device within a gathering of the Crusaders in the city of Manchester," the statement said.

British police said 22 people, including children, were killed and 59 people had been treated in hospital. A total of 60 ambulances attended the incident.

"With regards to last night's incident at the Manchester Arena, we can confirm we have arrested a 23-year-old man in South Manchester," Greater Manchester Police said on Twitter on Tuesday.