A police statement said the suspect, a 17-year-old from East Jerusalem, was arrested.
Violence has swept the occupied West Bank for the past 18 months, with occasional attacks in Jerusalem.
Reuters quoted Avi Hacohen, an emergency medic who happened to be near the scene of the attack, that he found a man in his fifties lying on the ground and bleeding profusely from several wounds.
And Israeli Channel 12 showed pictures of bloodstains on the sidewalk outside the Old City gate, which is the main entrance for tourists. The police closed off the surrounding area.
Violence between Israel and the Palestinians this year has led to the deaths of at least 226 Palestinians, 32 Israelis, a Ukrainian and an Italian, according to a count conducted by Agence France-Presse based on official sources on both sides.
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