Hundreds of worshippers at Jerusalem's al-Aqsa mosque threw stones at Israeli police amid continuing Muslim outrage over Israel's repair work near the holy site.
Israeli police entered the compound after Friday prayers, firing tear gas canisters, rubber bullets and stun grenades to disperse the protesters.
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Dozens of protesters are reported to have barricaded themselves inside the compound that Muslims call the Noble Sanctuary. It holds the al-Aqsa mosque, Islam's third holiest site, and the Dome of the Rock shrine.
Muslim leaders have called on Israel to halt its work on a ramp near the compound, saying the repairs could endanger the holy site.
Israel has said the repair work will not damage the site.
The Israel Antiquities Authority says it is considering installing a web camera in the area that would provide 24 hour a day live pictures in order to show that Israel is not damaging the holy site.
The site also is sacred to Jews, because it was the site of the ancient Jewish temple. Disputes over the area previously have triggered Israeli-Palestinian violence.
The Arab League will convene an urgent meeting on Saturday to discuss the Israeli repairs.
Media reports in Israel said Thursday that Prime Minister Ehud Olmert has rejected an appeal from his defense minister to halt repair work near the al-Aqsa mosque.
The reports said Defense Minister Amir Peretz wrote to the prime minister Wednesday, requesting an immediate halt to the work out of fear it could escalate tensions.
Some information for this report was provided by AFP, AP and Reuters.