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

The stabbing took place near Damascus Gate, one of the main entrances to the Old City.

It occurred just hours before weekly Friday prayers at the nearby Al-Aqsa Mosque, when tens of thousands of people are expected for prayers on the last Friday of the Muslim holy fasting month of Ramadan.

Read more: Israel demolishes home of Palestinian accused of fatal stabbing

Another Palestinian teenager was shot dead by Israeli forces in the occupied West Bank on Friday, the Palestinian health ministry said.

In a statement the ministry said Abdullah Ghaith, 16, "died after he was shot by Israeli occupation soldiers close to Bethlehem and his heart and lungs were penetrated."

Palestinian media suggested he was seeking to breach an Israeli fence to get into Jerusalem to pray at the revered Al-Aqsa mosque on the last Friday of the Muslim holy month of Ramadan.

But there was no independent confirmation of the circumstances of his death and the Israeli army did not immediately respond to requests for comment.

In other countries across the Mideast, rallies are set to take place Friday to mark Quds, or Jerusalem Day, an annual event held on the last Friday of Ramadan.

This year's protests come as the Trump administration is pushing an Israeli-Palestinian peace plan whose details remain unknown.

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

Agencies contributed to this report

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