An Israeli security guard has shot dead a Palestinian man in Jerusalem's Old City after the Palestinian grabbed a gun from another Israeli guard and opened fire.

Rescue workers and bystanders gather around the body of a Palestinian man at the scene of a shooting in Jerusalem's Old City, 10 Aug 2007

Israeli police say the gunfight Friday began when the Palestinian snatched a gun from an Israeli guard outside a Jewish seminary in the Old City's Christian quarter. They say the attacker, roughly 20 years old, shot and wounded the guard and fled.

Another Israeli guard chased the Palestinian and shot him dead after a brief exchange of fire. Ten bystanders also were wounded by the gunfire.

Several witnesses say the Israeli guard kept shooting after the attacker fell to the ground. Israeli police say the security guard acted appropriately in response to a terrorist incident.

In May, Israeli security forces killed two Palestinian gunmen who opened fire in an Arab neighborhood of East Jerusalem. Two Israeli officers were wounded in that attack.

Some information for this report was provided by AFP, AP and Reuters.