Two teenagers have been arrested in connection with the murder of a transgender woman in Istanbul.

Çağla Joker, 26, was killed and her friend Nalan, 45, seriously injured in the attack on Tuesday.

Police and paramedics arrived after neighbours heard gunshots in the Tarlabaşı district. 

Joker died at scene, while Nalan was transferred to the nearby Şişli Etfal Hospital.

The two suspects arrested, identified only as HT and TM, are aged 17 and 19.

Hurriyet Daily News reports the suspects say they attacked the victims after an argument that erupted over money in exchange for sex.

However, there are strong suspicions that the murder could be a transphobic hate crime.

Turkey has one of the highest murder rates for trans people in the world and successful prosecutions remains rare.