The focus on Al-Quds, or Jerusalem, is due to its symbolisation of Palestinian unity.

The shooting comes amid a period of deadly attacks and military raids across the West Bank, along with killings in Israel.

The church is in Israeli-annexed east Jerusalem, and for the second consecutive year Israeli police had told church leaders access would be considerably restricted.

Limiting church attendance to 1,800 people compared to 10,000 in the past is a necessary safety precaution, police say.

Despite appeals for restraint, violence has surged since Israeli police clashed with Palestinians inside Jerusalem's Al Aqsa Mosque this week.

The confrontations, during the Muslim holy month of Ramadan and on the eve of the Jewish Passover holiday, triggered a cross-border exchange of fire in Gaza and stoked fears of further violence.

The incident came amid fears that tensions built up during a year of escalating violence could be unleashed at the Al Aqsa mosque, where clashes in 2021 set off a 10-day war with Gaza.

Hundreds attended the traditional procession on the Mount of Olives with palm fronds and olive branches that celebrates the entry of Jesus into Jerusalem at the start of Holy Week.

Friction at Al Aqsa Mosque has set off violence in recent years, although the sacred site remained relatively quiet on Saturday.

Violence has flared this year, particularly in the occupied West Bank, where the Israeli army has launched near-daily raids since a series of deadly attacks on Israeli targets earlier this year.

Australian Foreign Minister Penny Wong insists that the decision does not signal any broader shift in policy or hostility towards Israel.

The latest in near-daily incursions into Jenin, a militant stronghold, underline the volatile security climate in the West Bank as Israel heads towards elections on Nov 1.