Israeli police say an alleged Palestinian attacker has been killed after stabbing and injuring two Israelis in Jerusalem's Old City.

They say the incident occurred at Damascus Gate, one of the main entrances to the Old City.

Police say one Israeli was in critical condition, while the second is in moderate condition. The 19-year-old suspect was shot by security forces on the scene.

The incident occurred just hours before weekly Friday prayers at the nearby Al-Aqsa Mosque, when tens of thousands of people are expected for Ramadan prayers.

On Sunday, Israel marks its 'Jerusalem Day,' when it celebrates capturing the Old City in the 1967 Mideast war.