An Israeli teenager has died of stab wounds sustained when an ultra-Orthodox man with a knife attacked a Gay Pride parade in Jerusalem three days ago.

High school student Shira Banki, 16, was one of six people wounded in the assault. Hadar Elboim of Hadassah hospital said the succumbed to her wounds Sunday and that her organs will be donated.

The suspect, Yishai Shlissel, was arrested at the scene. Police have come under fire for not keeping him under surveillance as he had been released from prison only weeks earlier having been jailed for stabbing three at the same event in 2005.

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High school student Shira Banki, 16, has died after succumbing to stab wounds she sustained in an attack on a Gay Pride march in Jerusalem on Thursday

The suspect in Shira's death, ultra-Orthodox Jew Yishai Shlissel, pictured brandishing a knife at the event

Israeli youths weep during a candlelight vigil in Tel Aviv for Shira. Dozens turned out to mourn her loss

Teenagers comfort each other during a similar event in Jerusalem where Shira was stabbed on Thursday

Shira went on the march on Thursday in support of her LGBT friends, reported Israeli newspaper Haaretz. Her parents and three siblings survive her.

Shlissel is brought handcuffed to the Jerusalem Magistrate's Court on Friday

In a statement her family said: 'Our magical Shira was murdered because she was a happy 16-year-old – full of life and love – who came to express her support for her friends' rights to live as they choose.

'For no good reason and because of evil, stupidity and negligence, the life of our beautiful flower was cut short. Bad things happen to good people, and a very bad thing happened to our amazing girl.

'The family expresses hope for a less hatred and more tolerance.' The family requests the public respect their privacy as they grieve.'

'We won't permit the terrible murderer to challenge the basic values on which Israeli society is built.' Prime Minister Benjamin Netanyahu said in a statement after sending his condolences to the family.

'We reject with disgust any attempt to impose hatred and violence among us and will bring the murderer to justice,' it said.

'Shira was murdered because she bravely supported the principle that everyone has the right to live their lives respectfully and with security.'

Candlelight vigils are being held tonight in Tel Aviv and Jerusalem in memory of Shira.

A video on YouTube apparently shows a 10-year-old Shira playing a piano concerto at a concert in Jerusalem in 2009, under which some messages of sympathy have been posted (see below).

Of the remaining five people wounded in the attack two are still in hospital in a serious condition, though they are said to be improving. Three others whose injuries were not so serious have been released from hospital.

Mourners use lit candles to spell out the phrase, 'Thou shalt not kill' in Hebrew, during a the vigil for Shira in Tel Aviv

Mourners at the Tel Aviv vigil. A Gay Pride march like the one at which Shira was stabbed is held every year in Tel Aviv but generally passes peacefully as secular Jews hold greater sway in what is the country's entertainment and business hub

Two girls are overcome with emotion at the Jerusalem vigil, surrounded by other mourners. The annual parade at which Shira was attacked has long been a focus of tension between Israel's predominant secular majority and the ultra-Orthodox Jewish minority, who object to public displays of homosexuality

Schlissel was convicted of attempted murder and aggravated assault and sentenced to 12 years behind bars for the 2005 attack.

In 2007 this was reduced to 10 years by the Supreme Court after Schlissel appealed.

He reportedly returned to his hometown of Modiin Ilit after his release three weeks ago and was seen giving out pamphlets calling on 'all Jews faithful to God' to risk 'beatings and imprisonment' in order to stop the march going ahead, reported Haaretz.

He also posted a letter on the internet speaking of the 'abomination' of a Gay Pride parade being held in the Holy City and the need to stop it.

Appearing in court on Friday representing himself, Shlissel said 'I do not accept this court's authority,' according to Haaretz.

'This court is part of the mechanism of evil. I have no interest in cooperating at all. I do not recognise any of the regime's institutions.'

A couple hug each other as hundreds of Israelis took part in a protest rally against violence toward the gay community in Jerusalem yesterday

The scene at the demonstration in Jerusalem yesterday. There were also marches in Tel Aviv and Haifa in solidarity with the gay community

Israeli President Reuven Rivlin speaks during yesterday's anti-homophobia rally in Jerusalem. He told the crowd: 'We must not be deluded, a lack of tolerance will lead us to disaster'

Police formed a committee following harsh criticism over how Shlissel - who has told the court he did not accept its authority - was allowed near the march so soon after his release from jail.

The annual parade in Jerusalem, which drew about 5,000 this year, has long been a focus of tension between Israel's predominant secular majority and the ultra-Orthodox Jewish minority, who object to public displays of homosexuality.

The same event every year in Tel Aviv generally passes peacefully as secular Jews hold greater sway in what is the country's entertainment and business hub.

The stabbings shocked Israel and drew condemnations from across the political spectrum. Israel's president, Reuven Rivlin, warned 'we must not be deluded, a lack of tolerance will lead us to disaster.'

On Friday morning, hours after the march, assailants suspected of being Jewish settlers firebombed a Palestinian family's home in the West Bank, killing an 18-month-old toddler.

A relative holds up a photo of a one-and-a-half year old boy, Ali Dawabsheh, in a house that had been torched in a suspected attack by Jewish settlers in Duma village near the West Bank city of Nablus

A Palestinian protester stands amid burning tires during clashes with Israeli forces in the West Bank on Saturday in reaction to the firebombing. The day was one of the most tense in the occupied territory in recent months

The attack killed 18-month-old Ali Saad Dawabsha and also left his parents and four-year-old brother critically wounded.

The family's small brick and cement home in the village of Duma was gutted by fire, while a Jewish Star of David was spray-painted on a wall along with the words 'revenge' and 'long live the Messiah'.

Some have speculated that the attack was revenge for the demolition of two buildings in a settlement last week.

The stabbing and the firebombing have put a spotlight on Jewish extremists, while the firebombing further inflamed tensions between Israelis and Palestinians, with clashes breaking out in various cities.

On Saturday a Palestinian youth died at a West Bank hospital just hours after a clash with Israeli troops near Ramallah in protest against the arson attack.

The confrontation was one of three in a matter of hours in which Palestinians were killed on one of the most tense days in the occupied West Bank and the Gaza Strip in recent months.

Palestinian protesters carry an injured comrade during clashes with Israeli security forces on a street leading to Duma village. One youth was shot dead by Israeli soldiers

An Israeli soldier aims his weapon at Palestinian protesters during clashes near Duma village

The Palestinian youth was fired upon by Israeli soldiers after he threw a fire-bomb at them, the military said.

On Sunday morning Palestinian protesters clashed with Israeli police at Jerusalem's Al-Aqsa mosque, one of Islam's holiest sites, though calm was later restored.

Prime Minister Benjamin Netanyahu called the firebombing 'terrorism' - a word usually used by Israelis to refer to violence by Palestinians. On Sunday, he spoke of 'zero tolerance' for such acts.

But many have accused his government of failing to address the problem of Jewish extremism and of going dangerously far in its support for right-wing settler groups.

'Those who incite against Israel's Arab citizens should not be surprised when churches and mosques are set on fire, and when finally a baby is burned in the middle of the night,' ex-president Shimon Peres told an anti-violence rally in Tel Aviv on Saturday night.

His comments were seen as at least partly directed at Netanyahu, who on election day in March caused outrage when he warned that Arabs were being mobilised 'in droves' to the ballot boxes.