Four Israelis were killed and eight wounded in a terrorist attack on a synagogue in Jerusalem.

Two terrorists entered the Kehillat Bnei Torah synagogue and attacked worshippers during morning prayers on Tuesday, using knives, axes and guns.

The attackers were shot at the scene by police.

The injured were taken to hospitals in the city.

Police spokeswoman Luba Samri said the attackers were Palestinians from East Jerusalem.

Police suspected a third terrorist may have been involved but later rejected the idea.

Prime Minister Benjamin Netanyahu said Israel would “respond with a firm hand to this brutal murder of Jews who went to pray and were scathed by despicable murder”.

Hamas welcomed that attack, describing it as "a quality development in the confrontation with the Israeli occupation".

US Secretary of State John Kerry said the attack was an act of "pure terror".

He called for Palestinian leaders to condemn the attack.