A Palestinian man approached officers with a knife and was shot by police Thursday morning in the East Jerusalem refugee camp of Shuafat, police said.
Police and Border Police officers came to the refugee camp to arrest a suspect.
During the arrest, residents of Shuafat attempted to hinder the arrest, and at one point the Palestinian approached the officers holding a knife and was shot, police said.
No police officers were injured in the incident.
The Palestinian man, identified by local media as Yihya Hijazi, was lightly injured and taken to a Jerusalem hospital after being treated by Magen David Adom medics, a police spokeswoman told The Times of Israel.
Police said they completed the arrest of the suspect and exited the refugee camp.
A Fatah party spokesman later told the Palestinian Ma’an news agency that the man who was shot was trying to take a knife away from the suspect who was arrested.
On Wednesday, Border Police officers operating in the Palestinian town of al-Ram north of Jerusalem opened fire on a vehicle that officers said was accelerating toward them, killing one Palestinian passenger, Anwar al Salaimeh, 22.
A second person in the car was wounded. A third was unhurt, and was arrested by police and taken for questioning.
One of the border policemen opened fire, according to the army, after he “felt in danger.”
An IDF statement said the incident was being investigated.
A wave of Palestinian attacks in Israel and the West Bank since October last year has killed 37 Israelis, two Americans, an Eritrean and a Sudanese.
At least 215 Palestinians have been killed, most of them while carrying out knife, gun or car-ramming attacks, according to Israeli authorities.
Others were shot dead during protests and clashes, while some were killed by Israeli airstrikes in the Gaza Strip.
Times of Israel staff and AFP contributed to this report.