Hundreds of Jewish settlers on Sunday stormed into the Al-Aqsa Mosque compound in occupied East Jerusalem as Israeli police restricted the entry of Palestinian worshippers into the flashpoint site.

According to Haaretz newspaper, 728 settlers stormed the compound under heavy protection from the Israeli police.

The settler incursion came as Israeli police restricted the entry of worshippers for the dawn prayers at the Al-Aqsa Mosque.

Eyewitnesses said police closed the gates of East Jerusalem's Old City with barriers and prevented Palestinians from outside the city from accessing the mosque.

Witnesses said the restrictions were later eased as police withheld the IDs of some worshippers.

There was no comment from the Israeli police on the report.

Meanwhile, the Palestine Red Crescent Society said medics treated two Palestinians from injuries at the Lions' Gate, one of the gates leading to Al-Aqsa Mosque.

Witnesses said one was injured by an Israeli rubber bullet and the other was assaulted by police while trying to cross into the mosque for prayers.

Tension has mounted across the Palestinian territories in recent days after Israeli forces raided the Al-Aqsa Mosque courtyard on Friday amid clashes with worshippers, in which hundreds were injured.

Al-Aqsa Mosque is the world's third-holiest site for Muslims. Jews call the area the "Temple Mount," claiming it was the site of two Jewish temples in ancient times.

Since 2003, Israel has allowed settlers into the compound almost daily.

Israel occupied East Jerusalem, where Al-Aqsa is located, during the 1967 Arab-Israeli War. It annexed the entire city in 1980 in a move never recognized by the international community.