The Palestinian Health Ministry in the Gaza Strip says two men have died from wounds sustained in clashes with Israeli troops.

Key points: Two men reportedly killed after clashing with Israeli border forces

Two men reportedly killed after clashing with Israeli border forces Number of Palestinians killed since Trump's Jerusalem decision raises to 12

Number of Palestinians killed since Trump's Jerusalem decision raises to 12 Christmas celebrations in Bethlehem dampened by violence

The deaths — that occurred along the Israeli border — raised the number of Palestinians killed in violence in Gaza and the West Bank to 12 since US President Donald Trump's recognition of Jerusalem as Israel's capital earlier this month.

Most of the deaths have occurred in Gaza, where protesters have been clashing with Israeli forces along the border fence.

Forces have used tear gas and live fire to disperse the crowds.

The two men who were reportedly killed over the weekend have been identified as Mohammed Dahdouh, 20, and Sharif Shalash, 28.

Also among the dead are two Hamas militants killed in an Israeli airstrike that was carried out in response to rocket fire from Gaza.

A demonstrator dressed as Santa Claus was wounded during clashes with Israeli troops ( Reuters: Ibraheem Abu Mustafa )

Holy Land Christmas celebrations scaled back in protest

In Bethlehem, it was a subdued Christmas Eve, with spirits dampened by the violence.

Crowds were thinner than previous years, with visitors deterred by clashes between the Palestinian protesters and Israeli forces.

Although there was no violence on Sunday, Palestinian officials scaled back the celebrations in protest.

Claire Degout, a tourist from France, said she would not allow Mr Trump's pronouncement — which has infuriated the Palestinians and drawn widespread international opposition — affect her decision to celebrate Christmas in the Holy Land — the historical birthplace of Jesus.

"The decision of one man cannot affect all the Holy Land," she said.

"Jerusalem belongs to everybody, you know, and it will be always like that, whatever Trump says."

Mr Trump abandoned decades of United States policy on December 6 by recognising Jerusalem as Israel's capital and saying he would move the American embassy to the Holy City.

He said the move merely recognised the fact Jerusalem already served as Israel's capital and that he was not prejudging negotiations on the city's final borders.

But Palestinians — who seek Israeli-annexed east Jerusalem as their capital — saw the declaration as unfairly siding with Israel.

Last week, the United Nations General Assembly voted overwhelmingly to reject Mr Trump's decision.

The announcement triggered weeks of unrest in the West Bank and Gaza Strip, including near-daily clashes in Bethlehem, which lies just south of Jerusalem.

Sorry, this video has expired Nikki Haley warned the United States will remember this day (Image: AP/Mark Lennihan)

Christmas a 'time to enjoy' despite difficulties

By mid-afternoon Sunday (local time), hundreds of people had gathered in Manger Square near Bethlehem's main Christmas for celebrations, greeted by bagpipe-playing young Palestinian marching bands and scout troops.

Accompanying the decorations was a large banner protesting Mr Trump's Jerusalem declaration.

People attend Christmas celebrations outside the Church of the Nativity in the West Bank city of Bethlehem. ( Reuters: Ammar Awad )

Bethlehem's mayor, Anton Salman, said celebrations were toned down because of anger over the decision.

"We decided to limit the Christmas celebrations to the religious rituals as an expression of rejection and anger and sympathy with the victims who fell in the recent protests."

Next to the square was a poster that read "Manger Square appeal" and "#handsoffjerusalem".

"We want to show the people that we are people who deserve life, deserve our freedom, deserve our independence, deserve Jerusalem as our capital," Mr Salman said.

The Most Reverend Monsignor Pierbattista Pizzaballa, the apostolic administrator of Jerusalem and the top Roman Catholic cleric in the Holy Land, crossed through an Israeli military checkpoint to enter Bethlehem from Jerusalem.

His black limousine was escorted by a group of men on motorcycles, some of them wearing red Santa hats.

Pierbattista Pizzaballa — the Roman Catholic cleric in the Holy Land — arrives to the Church of the Nativity in the West Bank City of Bethlehem. ( AP: Majdi Mohammed )

He tried to steer clear of politics after last week rejecting the US decision.

He waved to the crowd, shook hands and hugged well-wishers as he walked to the Church of the Nativity, where he was to celebrate midnight mass.

"I already said the message. Now it's time to enjoy," he said.

"We as Christians we will enjoy, despite all the difficulties we have. Merry Christmas."

James Thorburn, a visitor from London, said he was determined to enjoy the holiday and show solidarity with Bethlehem's residents.

"I know that a lot of people did cancel," he said.

"I felt I should come to support the Palestinians."

AP