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Two Israeli border guards were wounded.
He said the border guards then shot him "after he fled on foot and did not heed warning shots."
Dr Amin Abu Ghazaleh of the Palestinian Red Crescent Society said one man was killed and two others were wounded in the incident.
Police had earlier gone on high alert in and around the Old City in east Jerusalem, fearing violent protests in the wake of the deadly seizure of a Gaza-bound aid flotilla by naval commandos that sparked international outrage.
They also limited access to the city's flashpoint Al-Aqsa mosque compound to men over the age of 40 and women and children ahead of Friday prayers.
Later on Friday, dozens of Palestinians chanted anti-Israel slogans and "God is great" at the funeral for the man, who was buried at a cemetery on the outskirts of the mosque compound.
It was not immediately clear if Friday's violence had any political motive, but police said the were maintaining the alert in the wake of the shooting.
The mosque compound, in the Old City, is the third most sacred site in Islam. It was there that Arab anger over a visit by then Israeli opposition leader Ariel Sharon sparked a Palestinian uprising in 2000.
Clashes erupted across mostly Arab east Jerusalem in March over the reopening of a 17th century synagogue a few hundred metres (yards) from the mosque and rumours that Jewish extremists planned to destroy the compound.
Israel occupied east Jerusalem in the 1967 Six-Day War and annexed it to its capital in a move not recognised by the international community. The Palestinians view east Jerusalem as the capital of their promised state.
On May 31, Israeli forces stormed a Turkish ship that was part of an aid flotilla seeking to break Israel's blockade of the Gaza Strip. Ensuing clashes left nine Turkish activists dead.
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Dr Amin Abu Ghazaleh of the Palestinian Red Crescent Society said one man was killed and two others were wounded in the incident.
Police had earlier gone on high alert in and around the Old City in east Jerusalem, fearing violent protests in the wake of the deadly seizure of a Gaza-bound aid flotilla by naval commandos that sparked international outrage.
They also limited access to the city's flashpoint Al-Aqsa mosque compound to men over the age of 40 and women and children ahead of Friday prayers.
Later on Friday, dozens of Palestinians chanted anti-Israel slogans and "God is great" at the funeral for the man, who was buried at a cemetery on the outskirts of the mosque compound.
It was not immediately clear if Friday's violence had any political motive, but police said the were maintaining the alert in the wake of the shooting.
The mosque compound, in the Old City, is the third most sacred site in Islam. It was there that Arab anger over a visit by then Israeli opposition leader Ariel Sharon sparked a Palestinian uprising in 2000.
Clashes erupted across mostly Arab east Jerusalem in March over the reopening of a 17th century synagogue a few hundred metres (yards) from the mosque and rumours that Jewish extremists planned to destroy the compound.
Israel occupied east Jerusalem in the 1967 Six-Day War and annexed it to its capital in a move not recognised by the international community. The Palestinians view east Jerusalem as the capital of their promised state.
On May 31, Israeli forces stormed a Turkish ship that was part of an aid flotilla seeking to break Israel's blockade of the Gaza Strip. Ensuing clashes left nine Turkish activists dead.
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