Six Palestinians were injured and four others were arrested during clashes with Israeli police in East Jerusalem neighborhood of Silwan, witnesses said, Xinhua reported.
The witnesses said angry Palestinian young men threw stones at Israeli police and settlers who came to inspect a site where the municipality of Jerusalem is planning to build an entertainment place.
The Israeli police used rubber-coated metal bullets and tear gas to disperse the crowds, the witnesses added.
The municipality of Jerusalem approved in June a plan to demolish 22 Arab-owned houses in Silwan to build an archeological garden in the neighborhood.
Meanwhile, Israeli troops arrested seven Palestinians in the West bank city of Hebron and led them to an unknown location, witnesses in the area told Xinhua.
The Israeli soldiers arrested the Palestinians during house search operations in the city's neighborhoods, the witnesses added.
Israeli forces have been storming the settlement-dotted West Bank cities to arrest "wanted activists", while the Palestinian National Authority (PNA) has been complaining that such attacks hindered its forces from maintaining law and order in the territory.