Police spokeswoman Luba Samri said the "female terrorist" stabbed an Israeli man from behind in his upper body, lightly wounding him. The man drew his gun and fired, wounding her seriously, Samri said.
Both have been taken to a hospital.
Israel's Channel 2 TV said the attack took place near the site where a Palestinian stabbed an Israeli man to death and wounded his wife and toddler on Saturday. That assailant then attacked and killed another Israeli man before he was shot dead by police.
The ban did not apply to Palestinians who live, work and study within the Old City, or Israelis or tourists.
The move was imposed after a series of Palestinian attacks that killed several Israeli civilians.
Israel beefed up its forces in Jerusalem and the West Bank since the current unrest began about three weeks ago, and Prime Minister Benjamin Netanyahu is under intense domestic pressure to do more.
Four Israelis were killed last week in shooting and stabbing attacks in Jerusalem and the West Bank, while Israeli forces have killed four Palestinians, including a 13-year-old boy, amid violent protests.
Another measure banning men under the age of 50 from entering the Al-Aqsa mosque compound for prayers was also lifted. Israel has imposed the ban at times of unrest in the past as it is mostly young Palestinian men who take part in the violence.
That site has been at the heart of the recent tensions. The hilltop compound is revered by Muslims as the spot where the Prophet Muhammad ascended to heaven and by Jews as the site of the two Jewish biblical Temples.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
