Israeli police said on Friday that Muslim men under the age of 50 will not be allowed at al-Aqsa compound, in an announcement made hours ahead of expected mass protests.
At least one Palestinian has been killed, according to local media, and hundreds more injured amid mass protests over new Israeli security measures at the al-Aqsa Mosque compound.
An Israeli settler killed an 18-year-old Palestinian man in the Ras al-Amud neighbourhood in occupied East Jerusalem, according to the Palestinian Ministry of Health.
Israeli police also fired live ammunition, tear gas and rubber-coated bullets at Palestinians protesting against the new measures, including the barring and the installation of metal detectors.
The protests come a week after a deadly shoot-out at the occupied East Jerusalem compound, which triggered tensions.
At least 140 Palestinians have been injured in occupied East Jerusalem and the West Bank, according to the Palestinian Red Crescent.
Earlier in the day, police swarmed into Jerusalem's Arab neighbourhoods, particularly in and around the walled Old City where the shrine is located.
At least 3,000 Israeli police and border police units had been deployed to the area, according to a police spokesman.
Israel's security cabinet said that Israeli police would decide when to remove metal detectors and turnstiles installed at the compound last week, a disappointing statement to Palestinians who view the measures as collective punishment and an infringement on the status quo, which gives Muslims religious control over the compound and Jews the right to visit, but not pray there.
Israel tightened its grip on the compound after two Israeli security officers were killed in an alleged attack by three Palestinians, who were killed by Israeli police following the violence.
On Thursday, Israeli Prime Minister Benjamin Netanyahu received recommendations from different sectors of Israel's security services on the metal detectors.
Israel's internal security service, Shin Bet, said the barriers should be removed, while Jerusalem police insisted they stay.
Palestinian member of the Knesset Mohammad Barakeh told a meeting of Palestinian leaders in Jerusalem early on Friday that the security cabinet's decision is a "political game".
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