A passerby in Jerusalem's Old City captured the horrific murder of two Israelis on film Saturday night, in a stabbing attack conducted by a 19-year-old Arab terrorist.

The video was filmed near the Lion's Gate of the Old City, and in it gunfire, screams and a baby crying can be heard as the mayhem unfolds.

At around 12 seconds into the video the terrorist, wearing a black sweatshirt, can apparently be seen stabbing a victim in a white shirt from behind. He follows after his falling victim and repeatedly stabs him on the ground.

Shouts of "Allahu akbar" (Allah is greater), traditionally shouted by terrorists as they attack, is heard around the same time.

In the attack the terrorist attacked a family with a knife, stealing a gun from the 40-year-old father whom he stabbed repeatedly before opening fire on passersby before being shot dead by security forces.

The father was murdered in the stabbing attack, and another victim died of his wounds as well. Two other victims were likewise wounded, one of them the wife of the murdered man who is in critical condition.