© Reuters / Ronen ZvulunIsraeli security personnel search a religious Jewish Yeshiva next to a synagogue, where a suspected Palestinian attack took place, in Jerusalem, November 18, 2014.
Israeli police say both attackers were shot dead on the spot by officers. Spokeswoman Luba Samri described the incident as a "terrorist attack," according to AP.
Israel's Public Security Minister, Yitzhak Aharonovitch, has said that gun controls for self-defense will be eased in wake of the attack.
"In the coming hours, I will ease controls on carrying weapons," he said in comments broadcast on public radio.
He added that the new rules will apply to anyone who owns a gun license, such as private security guards and off duty army officers.
Israeli media reports four people have died in the incident and eight have been wounded, four seriously, two moderately and two lightly.
One of the victims was rabbi Moshe Twersky, the head of the English speaking Yeshiva Toras Moshe, an institution for religious studies, in Jerusalem. His funeral procession will be held at 2:00 pm local time.
Another of the victims was a British-Israeli national, according to the UK's Foreign Office.
"We are aware of the death of a dual British-Israeli national in Israel on 18 November 2014," the Foreign Office said in a statement.
The other three were US citizens and all four of the victims were rabbis, according to Israeli police spokesman Micky Rosenfeld
The FBI has said it will open an investigation into the attack as three of the victims were US citizens.
Israeli police spokeswoman Luba Samri confirmed the suspect's identity, AP reports.
"We were praying in synagogue in the morning, we heard gunshots from downstairs... one shot, two shots and then a flurry of shots," a witness who was inside the building told AP.
The attackers were reportedly Palestinian men from east Jerusalem.
The first call to the emergency services was at 7:01 and two traffic policemen were the first on the scene who were joined by a third officer. They starting shooting at the terrorists and killed them, although one of the policemen was critically wounded in the firefight and another moderately.
Prime Minister Benjamin Netanyahu stated that Israel is going to 'respond harshly' to this latest terror attack.
Palestinian President Mahmoud Abbas has condemned an attack on a Jerusalem synagogue.
"The presidency condemns the attack on Jewish worshipers in their place of prayer and condemns the killing of civilians, no matter who is doing it," Reuters cited Abbas's office as saying in a statement.
Tensions between Israelis and Palestinians have been running particularly high over the last two weeks after the EU's newly-appointed foreign policy chief, Federica Mogherini, called for the establishment of a Palestinian state in the next few years.
© Reuters / Ronen ZvulunIsraeli security personnel run next to a synagogue, where a suspected Palestinian attack took place, in Jerusalem, November 18, 2014.
Spanish MPs are expected to vote in support of a Palestinian state on November 18.
Last weekend Israeli Haaretz revealed a secret EU document that Israel could soon face sanctions from Brussels if Tel Aviv makes any further attempts to pose obstacles to a two-state solution with occupied Palestine.
© Reuters / Ronen ZvulunIsraeli police crime scene investigators stand near bodies of suspected attackers outside a Jerusalem synagogue November 18, 2014.
On Monday the conflict escalated even further as a Palestinian bus driver was found hanged inside his vehicle at a depot in Jerusalem, with the Israeli police saying the man committed suicide, while the driver's family claim he was lynched by Israelis.
Had Nof neighborhood of Jerusalem.
Oh...right...thats what Israel does.