A young British woman has been stabbed to death in Jerusalem amid the ancient city's Good Friday commemorations.

The victim, named as Hannah Bladon, aged 20, was travelling on the city's light railway, nearby Jerusalem's Old City when she was attacked with a kitchen knife, according to the Times of Israel.

Her attacker - reportedly a Palestinian 57-year old man from East Jerusalem - was wrestled to the ground by police and passers-by, and arrested at the scene. Bladon was taken to Jerusalem's Hadassah Hospital Mount Scopus for treatment, but died of multiple stab wounds to the upper body shortly after arriving.

Bladon was studying religion at Birmingham university. She was in Jerusalem on an exchange programme with the Hebrew University, taking courses in Bible studies, archaeology and religion. 

Israel's Shin Bet security agency identified the attacker as Jamil Tamimi, 57, from East Jerusalem's Ras al-Amoud neighbourhood.

A police spokesperson said he appeared to suffer from mental problems. Earlier this year, Tamimi attempted suicide by swallowing a razor blade, the Shin Bet said, and was found guilty of sexually abusing his daughter in 2011.

'This is another case, out of many, where a Palestinian who is suffering from personal, mental or moral issues choose to carry out a terror attack in order to find a way out of their problems,' the security agency said in a statement.

The attack took place near the capital's IDF Square, along Jaffa Road near the walls of the Old City.

Hundreds of thousands of pilgrims are visiting the Holy City this weekend, as Christians continue to mark Holy Week and the Easter weekend, and Jewish celebration of Passover continues. Security forces have been placed on high alert for the holiday period.