Israeli police and Palestinians clashed near Jerusalem's flashpoint al-Aqsa mosque on Friday and about 30 people were injured, Israeli police and Palestinian medical workers said.

Israeli police entered the compound housing the mosque and fired stun grenades to disperse Palestinians who they said had thrown stones on police officers and Jewish worshippers nearby.

Palestinian medical workers said at least 17 Palestinians were injured by tear gas and rubber-coated bullets, one seriously. About a dozen police officers were also lightly hurt in the clashes, a police spokesman said.

Witnesses said the violence started after Friday prayer ended and Muslim worshippers began waving flags from the Islamist group Hamas and throwing stones at Israeli police.

Tensions have been high at the holy site, known as the Temple Mount to Jews and the Noble Sanctuary to Muslims, most recently following Israel's announcement last month of a plan to restore Jewish religious sites in the West Bank.

Following the clashes, Palestinian President Mahmoud Abbas condemned Israel for trying to stymie efforts to restart peace talks.

Israel said it hoped to begin indirect negotiations with the Palestinians next week during a visit by Washington's Middle East envoy.