An Arabic man was arrested over a stabbing in the Old City area of Jerusalem on Monday afternoon (24 November).
A Jewish man in his forties was in a serious condition with injuries to his upper body, while a second younger man was less seriously hurt.
Police were treating the incident as a "terror attack", said spokesman Micky Rosenfeld.
"The victim was surrounded by a group of Arab men, one of whom stabbed him," he said.
One suspect was arrested soon after it happened and police were hunting a second man in connection with the incident.
Rosenfeld said: "Police continue to search the Old City for the other suspects."