The wounded were brought to a hospital, said the officials, who spoke on condition of anonymity because they were not authorized to disclose the information.
The U.S. military said the explosion destroyed the bus and confirmed that seven people were wounded, but said only one was killed. Conflicting casualty tolls are common in Iraq.
Iraqi police arrested one man at the site of the blast, said Lt. Col. Steven Stover, a military spokesman. He blamed Shiite extremists for the attack.
"It's a heinous act, especially considering they are targeting innocent civilians," Stover said.
Also Monday, an Iraqi policeman was arrested for allegedly using police vehicles to smuggle weapons to Baghdad. Iraqi forces captured the man, acting on a warrant from the Interior Ministry, the U.S. military said in a statement.
RSS feeds | Slideshow archive | ABC13 wireless | Help solve crimes