During the riots, which are taking place in several places in the city, stones have been thrown at the police, who in turn have fired distraction grenades and rubber-coated ammunition at the protesters.
About 30 people are said to have been arrested during the evening.
A police officer is said to have been injured, according to Israeli authorities.
On Friday, 200 Palestinians and 18 policemen were injured in clashes at the al-Aqsa Mosque.
The events have been condemned by several Arab countries and the United States, the EU and the UN have called for calm.
One of the reasons for the unrest is the growing Palestinian outrage over plans to evict Palestinians from their homes in East Jerusalem, in favor of Israeli settlers.
In recent weeks, daily protests have been organized in favor of the Palestinians in the area.
An important holiday
Saturday is for Muslims the holiest day during Ramadan.
Up to 90,000 people are said to have gathered at the Al-Aqsa Mosque in Jerusalem in recent days due to the holiday.
Buses carrying Muslim pilgrims on their way to the site have been stopped by Israeli police, which is interpreted by many of the weekend's protesters as a threat to their religious freedom.
The police, in turn, believe that the measure was carried out for security reasons.