The incident took place just after midnight outside the Muslim Welfare House, which houses a mosque, on the Seven Sisters Road in the northern part of the city, the Guardian reported. The site of the incident is close to another mosque near the Finsbury Park on the same road.
Several worshippers were in the area at the time of incident after attending Ramzan prayers.
Counter-terror police are investigating the incident.
The Metropolitan Police said that one man was pronounced dead at the scene and eight others were injured.
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"He has been taken to hospital as a precaution, and will be taken into custody once discharged. He will also be subject of a mental health assessment in due course."
Scotland Yard said armed police were at the scene, with the investigation being carried out by Counter Terrorism Command and an extra officers deployed to reassure Muslims during Ramzan.
The Metropolitan Police earlier declared the collision as a "major incident" and said that there were "a number of casualties".
"All my thoughts are with those who have been injured, their loved ones and the emergency services on the scene," she said.
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