The attack is said to be the deadliest in several years, according to the news agency Reuters.
According to Israeli police, the man, who is an Israeli citizen, has previously been imprisoned due to links with the terrorist organization IS.
According to the police, the man drove over one of the victims by car and then attacked with a knife.
In addition to the four victims, two people were injured.
The person who shot the perpetrator dead must be a civilian passer-by.
Israeli authorities have increased preparedness, as they fear that others may be inspired by the act, writes the newspaper Haaretz.
However, the perpetrator is believed to have acted alone, according to the newspaper.