Budapest was rocked by a bomb blast over the weekend which was initially thought to have been a gas explosion.
Two police officers were wounded in the attack which occured near Oktogon on Saturday night.
According to reports, a young female police officer received head injuries while a male officer suffered injuries to his legs and feet.
The female officer remains in critical condition while the male officer is expected to make a full recovery.
Hungarian police are investigating links to terrorism after a suspect deliberatly threw the device at two passing police officers.
An eye witness described how they saw a man "waiting in a doorway then throwing the device" which was packed with nails.
Karoly Papp, Chief of Police, revealed that “it was a home-made bomb. Someone wanted to murder our officers. He will be caught and his motivation will be determined".
Police are now searching for a man between the ages of 20 to 25 years old, who was wearing a light-colored fishing hat, a dark canvas jacket, blue jeans and white trainers at the time of the incident.
Officers say it is unclear if the suspect is still in Hungary or if he has fled to another European country.
The authorities have put up a cash reward of 10 million HUF for anyone who can lead them to the suspect.
"The explosion shattered glass windows and caused panic in the surrounding streets, with scores of emergency vehicles rushing towards the loud blast, which witnesses initially believed to be triggered by a gas leak," the UK's Daily Express reports today.
As a result of the blast, Hungary immediately strengthened its borders and increased security at airports.