“I’ve done a Google image search to see if the picture’s been lifted off of the internet but can’t find anything, which suggests that some idiot in the BBC has done this himself.”
But the BBC said the image had been sourced from the website of the EPA photo agency.
The accompanying captioned read: “Behind the dome is a very large Israeli flag flying from the roof of an apartment building in the Jewish Quarter of the Old City”.
The BBC said it was “nonsense” to suggest it had superimposed the flag on the photo.
The corporation said: "This was an agency photo which showed a flag flying from a building behind the Dome.
"We realised quickly that the picture could be misunderstood and misrepresented, and given the sensitive nature of the story, we updated it with a different picture.”
At least 14 people were injured - three of them seriously - when a car was driven into pedestrians in Jerusalem.
Hamas reportedly claimed responsibility for the attack.