An Israeli policewoman was stabbed and critically wounded in the attack, police said, with security forces shooting dead three suspected Palestinian assailants.
Two Palestinians were shot dead after opening fire at and trying to stab a group of Israeli police officers, police said.
At the same time a third attacker armed with a knife reportedly wounded two Israelis nearby before also being shot.
The ISIS terrorist group claimed responsibility for the attack, their first on Israeli soil, however it is not clear if the attackers were aligned with them or not.
"With God's help, we succeeded in carrying out an attack in the heart of Jerusalem, near the Temple Mount", the Islamic State, also known as IS, ISIS, ISIL or Daesh, said in a statement through its Amaq news agency, and warned that the attack "will not be the last".
Hamas said one of the attackers belonged to the Islamist Hamas movement and two others to the left-wing Popular Front for the Liberation of Palestine, both domestic Palestinian groups.
The IS group claimed the attack earlier today in an online statement, saying that three IS militants had targeted "a gathering of Jews" in an operation on Friday.
Israeli figures pointed the blame at Palestinian leaders.
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The FBI is expected to hold a news conference in Salt Lake City on Jeffs' arrest Thursday afternoon. "Earlier this year, the U.S. The money was then diverted to front companies and used to pay thousands for a tractor, truck and other items, prosecutors say.
A number of local and worldwide human rights groups have raised concerns that Israeli security forces have employed a "shoot-to-kill" policy when confronting Palestinians.
On June 16, Globe and Mail editors published an Associated Press report where its editors wrote the following headline: "Three Palestinians killed after attack on Israeli officers".
Clashes broke out following the army raids, with three Palestinians shot and dozens suffering tear gas inhalation.
Two days after the terror attack in which Hadas Malka was murdered, the Damascus Gate area in Jerusalem has gone from being the scene of a bloody stabbing attack to a place packed with tourists and Jewish and Arab residents.
Emad Zahran, the head of Deir Abu Mashal Local Council, said the soldiers closed all roads leading to the village, starting late at night Friday, and installed an iron gate, sealing the main entrance, and prevented the Palestinians from entering or leaving it.
Hamas says ISIL claim that three of its fighters attacked Israeli police is false and an attempt to "muddy the waters".
Palestinian media named the attackers as Adel Ankush, 18, from a village near Ramallah, Bra'a Salah, 18, from the same village, and Amar Bedui, 31 from Hebron.
In response to the attack, Israeli security services said that they were canceling entry permits for West Bank Palestinians to visit relatives inside Israel during the Muslim holy month of Ramadan.
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