A police spokeswoman said checkpoints were being set up at "the exits of Palestinian villages and neighbourhoods in east Jerusalem," where most of the recent attackers have come from.
A wave of mainly stabbing attacks have spread fear in Israel, while a gun-and-knife attack on a Jerusalem bus yesterday killed two people.
A third Israeli was killed on Tuesday when a Palestinian attacker rammed his car into pedestrians, then exited with a knife.
The move to install checkpoints followed a decision by Prime Minister Benjamin Netanyahu's security cabinet overnight authorising police to seal off or impose a curfew on parts of Jerusalem.
More From This Section
Netanyahu has faced major pressure over the wave of attacks as well as violent Palestinian protests in the West Bank and Gaza Strip.
The upsurge in violence that began on October 1 has led some to warn of the risk of a third Palestinian intifada, or uprising.
Frustrated Palestinian youths have defied efforts by Israel and Palestinian president Mahmud Abbas to restore calm.