Three people have been wounded in a stabbing attack early Wednesday afternoon at Jerusalem's Jaffa Gate, a popular tourist spot on the western side of the Old City.

One of the victims is in critical condition, according to medical sources. The second victim is seriously injured and the third moderately.

The victims received first aid at the scene from Magen David Adom (MDA) paramedics, and from there were transported to the capital's Hadassah Ein Kerem and Shaarei Tzedek hospitals. All three victims are in their 30s.

The attack was carried out by two Arab terrorists. Border Policewomen stationed in the area opened fire on both of them, killing one and wounding the other, who was then promptly taken into custody. 

Police are investigating emerging reports that the critically injured victim was in fact accidentally shot by security forces in the process of neutralizing the terrorists. Doctors at Hadassah Ein Kerem say he is in life-threatening condition and they are fighting for his life.

ZAKA volunteer paramedic Shimi Grossman, who was at the scene, described it as particularly serious attack, describing how the two terrorists pounced upon their first two Jewish victims at the entrance to Jaffa gate, before being neutralized by security forces.

In a statement, the Jerusalem Police Department described how "Border Policewomen noticed civilians running in panic towards Jaffa Gate, and, understanding that an attack was taking place, acted to limit the slaughter as they ran towards the sea of civilians."

"The officers identified two terrorists with knives as they were stabbing a man; with great determination and professionalism they directed fire towards the terrorists and neutralized them."

One of the officers, who was also a trained paramedic, joined emergency workers in providing first aid to one of the victims, who was evacuated from the area in critical condition.

Jerusalem District Commander Moshe Edri praised the officers for "acting with courage and much professionalism (to) neutralize the terrorists and prevent a much greater attack."

The latest stabbing attack breaks a slight lull in Arab terrorism in the Israeli capital. Yesterday violence continued elsewhere however, with an Arab terrorist apprehended in Hevron as she attempted to stab soldiers stationed at the Cave of the Patriarchs.