The 50-year-old victim was found in the Har Homa neighbourhood. Media reports have identified him as Amos Saar, a security officer in the Jerusalem District Court Guard.
Israeli police reportedly arrested a 30-year-old suspect from the same neighbourhood, though the motivation for the stabbing attack is still unknown. An investigation is underway.
The Israeli government has refused to recognise the Palestinian Authority as an independent political and diplomatic entity and continues to build settlements in the occupied areas despite objections from the United Nations.