"The first Jordanian, 17-year-old Mohammed Jawawdeh, succumbed to his injuries at the scene. The second, Bashar Hamarneh, a doctor who was in the residential quarter of the embassy at the time of the incident... Died of his injuries after midnight in hospital," the security source said yesterday.
The injured Israeli is "deputy director of security at the Israeli embassy and is still receiving treatment in hospital," the source added.
Police earlier said one person had died and two were injured in the incident in the residential Rabiyeh neighbourhood of Amman.
Police deployed to the scene and surrounded the area, the statement said, adding that the two Jordanians had gone into the building to carry out "carpentry work".
An investigation into the shooting was still underway, the police said.
The security source told AFP the casualties were the result of an unspecified "incident".
Jordanian security forces deployed in the streets around the embassy, an AFP correspondent said.
Israel and Jordan are bound by a 1994 peace treaty, but tensions have been high in recent days after Israel put in place security measures at a highly sensitive holy site in annexed east Jerusalem.
Jordan is the official custodian of Muslim holy sites in Jerusalem.
A crowd estimated at more than 8,000 turned out for a demonstration called by Islamist movements and leftist parties.
Israel shut off the mosque compound on July 14 after Arab Israelis attacked and killed two police officers nearby.
Violence flared between Israeli security forces and Palestinians who are demanding that Israel remove metal detectors installed outside the site after the attack.
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