Palestinian sources reported that 17-year-old Orwah Hammad was shot in the village of Silwad, an area with ongoing clashes.
The IDF Spokesperson's Unit said that around 7 pm an IDF force operating between Silward and Route 60 identified a Palestinian throwing a Molotov cocktail towards the highway, often frequented by Israeli vehicles.
The force used precise fire aimed at the direction of the terrorist, killing him. There were no casualties among the IDF soldiers.
Large forces were present Friday morning in the Old City and around pressure points such as Issawiya, French Hill and Silwan. The entrance to the Temple Mount was restricted to male worshipers aged 40 or over, and women of all ages.
There were other clashes in Arab areas in and around Jerusalem in which several people were lightly injured.
Earlier on Friday in Wadi Joz, an east Jerusalem neighborhood, three people were arrested for throwing stones and fireworks at police forces in the area. No one was hurt in the attacks.
Police were also preparing for the possibility that extremist Jews would try to take revenge against Arabs following Wednesday's attack at Ammunition Hill train station by a Palestinian terrorist, which killed three-month-old Chaya Zissel Braun.
The Associated Press contributed to this report.