"Rocks were hurled at the soldiers, wounding one of them lightly", an Israeli police spokeswoman said, claiming that the soldiers first fired warning shots and then fired toward the Palestinian youth.
Israel occupied East Jerusalem, in which the Al-Aqsa is located, during the 1967 Middle East War.
The Palestinian health ministry identified the killed teenager as 15-year-old Khaled Bahar.
"From the recording of the event it is possible to see that immediately after the danger was neutralised and had passed, the officers stopped firing, closed the area and proceeded to do the follow-ups on the incident".
Anti-terror police arrest man over London subway alert
Counter-terror police have launched a probe after a suspicious package was found on a train at North Greenwich tube station. The station, which was evacuated and closed by officers, reopened shortly after 6pm.
The violence has been largely characterized by alleged, attempted, and actual small-scale attacks committed by Palestinians against uniformed Israeli soldiers or police, mainly using knives or similar weapons.
Israeli security forces have arrested a Palestinian from the Gaza Strip suspected of planning "a multiple-casualty attack" on a function hall, authorities said yesterday.
The move comes after Jewish extremist groups this week called on supporters to converge on the site to mark the week-long Jewish holiday of Sukkot, which began on Sunday.
Israel, for its part, says 42 Israelis have been killed by Palestinians over the same period.
According to the Maan news agency, a total of 274 individuals died during the wave of unrest, from October 1, 2015, to September 30 of this year, including 235 Palestinians, many of whom were killed while perpetrating attacks.