Israeli Police have arrested three underage girls who allegedly vandalised Muslim graves at a cemetery in Jerusalem.

The girls scrawled the words "Price Tag" on gravestones at the cemetery outside the eastern wall of the Old City, near the Golden Gate, police said.

The trio refused to cooperate during questioning and are now due to appear before a court, the Jerusalem Post has reported.

"Price-tag" is a term that defines a retaliatory attack against non-Jews or their property carried out by Jewish right-wing extremists.

These extremists usually target Palestinian properties but also Mosques, churches and even Israeli military bases have been subject to vandalism.

Earlier this week hundreds of people took to the streets in the Arab-Israeli city of Umm el-Fahm to protest against a price-tag attack on a local mosque.

Worshippers heading to the Araq al-Shabab mosque for the traditional Friday prayers last week had found the door burnt and the words "Arabs out" spray-painted on a wall.

Protest leaders were accused by Israel's hawkish Foreign Minister Avigdor Liberman of "cynically exploiting" episodes of far-right vandalism to attack the state of Israel.

"Their behaviour once again proves that they have long seen become a fifth column whose entire objective is to destroy the state in which they live," Liberman said. "To that end, they are willing to exploit every incident and every insane person."