A US citizen has been arrested in connection with the failed car bombing in

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New York's Times Square last weekend but investigators continue to pursue leads, Attorney General Eric Holder said on Tuesday.

The suspect -- identified by Holder as Faisal Shahzad -- is of Pakistani origin, a law enforcement official told said.

The New York Times said the man lives in neighboring Connecticut and recently returned from a trip to Pakistan.

Holder said the suspect was arrested at John F. Kennedy International Airport in New York as he tried to take a flight to Dubai. Authorities in New York said he would appear in Manhattan Federal Court later on Tuesday.

"It's clear that the intent behind this terrorist act was to kill Americans," Holder said at a news conference. "We continue to gather leads in this investigation, and it's important that the American people remain vigilant."

Sources said the arrested man is believed to be the buyer of the 1993 Nissan sport utility vehicle used to carry the crude bomb made of fuel and fireworks into Times Square as it was packed with people on a warm Saturday evening.

For New Yorkers who bore the brunt of the Sept. 11 attacks by al-Qaida militants in 2001, the scare was a reminder that their city of 8 million people is under constant threat.

"Investigators who were tracking the man were also exploring whether he or others who might have been involved in the attempted bombing had been in contact with people or groups overseas," the Times said, citing unnamed federal officials.

Law enforcement sources told Reuters that Saturday's attempted attack may have involved more than one person and could have international ties. The hunt for the suspects has now been taken over by the Joint Terrorism Task Force, led by the Justice Department, as investigators pore over surveillance camera footage, the Pathfinder and the bomb parts for clues.

Pakistan is a key ally to the United States and other NATO countries fighting the Taliban in neighboring Afghanistan but is also seen as a training ground for Islamist militants.

'INTENDED TO TERRORIZE'

Street vendors selling T-shirts and handbags alerted police to the smoking and sparking Nissan Pathfinder that was parked awkwardly with its engine running and hazard lights on near a Broadway theater where Disney's "The Lion King" is performed.

The Pathfinder, with a license plate taken from a car now in a repair shop in Connecticut, was rigged with propane gas cylinders, gasoline cans, fertilizer, fireworks and timing devices when it was found in Times Square.

"I would say that that was intended to terrorize," White House spokesman Robert Gibbs said on Monday. "And I would say that whoever did that would be categorized as a terrorist."

The Taliban in Pakistan said on Sunday it planted the bomb to avenge the killing in April of al-Qaida's two top leaders in Iraq. New York Police Commissioner Ray Kelly and Bloomberg have said there was "no evidence" to support that claim.

But former CIA analyst Bruce Riedel, who oversaw an Obama administration strategy review on Afghanistan and Pakistan last year, cautioned against dismissing a possible role of the Pakistani Taliban in the failed car bomb.