Before being detained by civilians in the area a Palestinian stabbed and wounded a passer by north, authorities said, the latest in a wave of assaults that have targeted Israelis.
They described the attacker as a 22-year old Palestinian from east Jerusalem and said he was taken to hospital with serious injuries after being beaten by residents.
It was Jerusalem, the 21st stabbing attack in Israel along with the West Bank since October 3. One revenge attack happened last week, when a Jewish man stabbed and wounded two Palestinians and two Arab Israelis in the southern Israeli city of Dimona.
The assaults in addition to violent demonstrations in annexed east Jerusalem and the occupied West Bank have led to warnings a full-scale Palestinian uprising, or intifada that was third, could erupt.
Unrest has also spread with battles across the border in recent days leaving nine Palestinians dead.
On Monday evening, heaps of Gaza residents broke through the boundary fence and entered Israel before being pushed back by troops, Palestinian witnesses said.