"The prime minister instructed that forces be strengthened in areas of conflict and that they should act aggressively against rioters," his office said after a special meeting of the security chiefs, also attended by Jerusalem's mayor and government legal advisors.
"He stressed that the current situation must not be allowed to become the norm," it said.
Since July's killing of a Palestinian teen by Jewish extremists and the start of a bloody Israeli military offensive in Gaza, Palestinians youths have been almost constantly on the streets throwing stones and petrol bombs at police, motorists and public transport.
Police say they have arrested more than 700 Palestinians in Israeli-annexed east Jerusalem since July, including at least 250 minors.
Rights groups allege many cases of police use of excessive force.
Police in the city are already out in numbers ahead of the week-long Jewish holiday of Sukkot, starting tomorrow evening, which swells the number of Jewish visitors to the Old City.
"Recently there have been stone-throwing incidents, public disturbances and violence," the statement quoted Netanyahu as telling today's meeting.
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