The officers later died.
According Israeli claims the three start shooting in one of al Al Aqsa mosque Gates and run into the squares. Kamil Shnaan, 22, the son of former Israeli parliament member Shakib Shnaan, the Times of Israel reported.
Yoram Ha-Levy, Jerusalem police district commander said that Friday prayers will not be held at the Al-Aqsa mosque.
Following the shooting, Commander of the Jerusalem District Yoram Halevi ordered to shut down the compound, canceling all the Friday prayers at the site.
"Until now, we don't know what is going on with my father", he said.
Palestinian Authority President Mahmoud Abbas condemned the attack in a phone call to Mr Netanyahu, the prime minister's office said. The leaders have nearly no direct contact.
No group has claimed responsibility for the attack but Hamas, the militant group that presides over the Gaza Strip, was on Friday quick to hail the assault. Involvement by Arab Israelis in such attacks has also been rare.More news: Lonzo Ball's Summer League performances by the shoes he's worn
The compound has been closed by police today (July 14) and no prayers are to take place there.
The attackers opened fire on the Israeli officers from inside the site, he said.
Police spokeswoman Luba Simri told the Reuters news agency: "When they saw policemen they shot toward them and then escaped toward one of the mosques in the Temple Mount compound. Holy sites must be protected".
Video being shared on social media appeared to show gunshots ringing out at the holy site. They were pursued and shot dead by security forces.
The compound and all entrances to the Old City have been closed off by security forces.
Hussein was detained at the Lions Gate, the bodyguard said.
Three gunmen entered the Old City around 7 a.m. local time and targeted the officers, police spokesman Micky Rosenfeld told CNN. They were Druze from Israel's northern Galilee region.