Israeli police said on Friday that Muslim men under the age of 50 will not be allowed at al-Aqsa compound, in an announcement made hours ahead of expected mass protests.
Palestinians prepared for fresh demonstrations over new security measures at the holy site in occupied East Jerusalem, a week after a deadly shoot-out at the compound that triggered tensions.
The rallies were expected to begin after the Muslim Friday prayers, which take place around midday local time.
"Entry to the Old City and Temple Mount will be limited to men aged 50 and over. Women of all ages will be permitted," a police statement said.
Police swarmed into Jerusalem's Arab neighborhoods in the morning, particularly in and around the walled Old City where the shrine is located.
At least 3,000 Israeli police and border police units had been deployed to the area, according to a police spokesman.
Israel's security cabinet said that Israeli police would decide when to remove metal detectors and turnstiles at the compound installed last week - a disappointing statement to Palestinians who view the measures as collective punishment and infringement of the status quo, which gives Muslims religious control over the compound and Jews the right to visit, but not pray there.
Israel tightened its grip on the compound after two Israeli security officers were killed in an alleged attack by three Palestinians, who were killed by Israeli police following the violence.
On Thursday, Israeli Prime Minister Benjamin Netanyahu received recommendations from different sectors of Israel's security services on the metal detectors.
Israel's internal security service, Shin Bet, said the barriers should be removed, while Jerusalem police insisted they stay.
Palestinian member of the Knesset Mohammad Barakeh told a meeting of Palestinian leaders in Jerusalem on Friday that the security cabinet's decision is a "political game".
"The Israeli government's [decision] of referring the matter to the police is a political game in order to absolve Netanyahu of any responsibility by implying that this is not a political issue, rather a security issue, but the truth is that this is a political decision."
The leaders rejected Israel's measures and vowed to continue to hold prayers outside the compound until the barriers are removed.