The Jerusalem Magistrate Court, on Sunday remanded Amir Sidawi who carried out the terror shooting near the Old City for the next nine days.
The court also remanded Sidwai's brother to custody for three days.
The 26-year-old East Jerusalem resident, who was believed to have acted alone, was suspected of murder in the past but was eventually convicted of grievous bodily harm in 2015 and sentenced to eight years in prison, of which he served five.
In August 2020, he was released from Hermon prison as part of an administrative release, despite recommendations of security officials, after the parole board found that he underwent treatment that included, among other things, anger management workshops.
"The prisoner fulfilled his duties well, exhibited responsible and serious behavior and according to therapeutic teams, was a positive influence on other inmates in the ward," the parole board said.
A prison education official said she was impressed by his abilities. "He was engaged, responsible, showed and able to recognize emotions that would lead him to unwanted responses," she said.
During his incarceration, he volunteered to work with disabled children which the prison authorities believed advanced his rehabilitation.
Sidwai had enrolled in a Haifa University course in economic management and in a legal workshop but his participation was suspended after he was late to return to prison, from leave.
Sidwai opened fire in two separate locations near the Old City: First at a bus waiting in a parking lot near the Western Wall, wounding two male passengers in their 30s.
Then he fled and opened fire at a group of people nearby, wounding another six, four of them American citizens.
Sidawi turned himself in to the police Sunday morning after law enforcement launched a massive, hours-long manhunt after him. He arrived at the capital's Moriya police station by taxi with the gun he used to carry out the attack and a knife. The taxi driver was questioned by the police.
Meanwhile, Prime Minister Yair Lapid vowed to "chase after" those "who harm Israeli citizens" after the attack in Jerusalem.
Speaking at the weekly Cabinet meeting, the premier said, "We will catch them everywhere, and we will prosecute them to the fullest extent of the law."
"The Jerusalem area will be significantly boosted [by security forces] to prevent copycat attacks, but I want to emphasize - the capital of Israel is safe, open, strong, and welcoming to tourists and residents alike," Lapid said.