Two Jewish settlers sustained stab wounds as a result of attack by Arab residents in the old city of Jerusalem, Israel radio reported on Monday evening.
The two men were rushed to Shaare Zedek Medical Center in Jerusalem in moderate and light conditions.
The Israeli police arrested three Palestinian youths in connection with the attack and started investigations to determine whether "it was a fight or a terrorist attack," according to the report.
Jerusalem has been flashpoint between the Palestinians and the Jewish settlers over the last three weeks in the wake of repeated incursions by the Jewish extremists into the holy Al-Aqsa Mosque which prompted Palestinian drivers to run over Israelis in deadly attacks.