17O NMR is used to probe the local influence of nonmagnetic Zn and magnetic Ni impurities in the superconducting state of optimally doped high TC YBa2Cu3O7. Zn and Ni induce a staggered paramagnetic polarization, similar to that evidenced above TC, with a typical extension xi=3 cell units for Zn and xi>or=3 for Ni. In addition, Zn is observed to induce a local density of states near the Fermi energy in its neighborhood, which also decays over about 3 cell units. Its magnitude decreases sharply with increasing temperature. This allows direct comparison with the STM observations done in BiSCCO.