The Zionist regime’s police say he was carrying "a suspicious object that looked like a pistol" and ran away when ordered to stop. The police say they chased him on foot and opened fire.
Police spokesman Micky Rosenfeld later said that no gun was found in the area.
The shooting came a day after Israeli soldiers killed a Palestinian in the occupied West Bank who they said had tried to ram them with his vehicle. No Israelis were wounded in either incident.
Tensions have risen in recent weeks as Israel has pressed ahead with plans to annex large parts of the occupied West Bank in line with US President Donald Trump's Middle East plan, which strongly favors Israel and was rejected by the Palestinians.
The Palestinian Authority said last week that it was no longer bound by past agreements with Israel and the United States and was cutting off all ties, including longstanding security coordination.
Rights groups have accused Israeli security forces of using excessive force against Palestinians suspected on intending to carry out attacks, either by killing individuals who could have been arrested or using lethal force when their lives were not in danger.
Saturday's shooting occurred in east Jerusalem, which Israel captured in the 1967 war along with the West Bank and the Gaza Strip. The Palestinians want all three territories for their future state.