New Delhi, March 2 -- A tram derailed Friday and slammed into a building in the heart of Milan, killing two people and injuring more than two-dozen others, officials said.

The incident, along the central Vittorio Veneto avenue, came as the Italian business capital is hosting its seasonal fashion shows and is in the interim between hosting the Winter Olympics and Paralympic Games.

The No. 9 tram runs through the heart of Italy's financial capital. It was supposed to have continued straight along Vittorio Veneto and was going at a high speed. But it suddenly swerved at a switch track that is used by another tram line and went off its usual course, according to video of the crash broadcast by Sky TG24.

The video shows the tram nearly flip...