The victim was "moderately" wounded in the stabbing near a bus station in Raanana, police said.
They described the attacker as a 22-year-old Palestinian from east Jerusalem and said he was taken to hospital with serious injuries after being beaten by residents.
It was the 21st stabbing attack in Israel, Jerusalem and the West Bank since October 3. One revenge attack occurred last week, when a Jewish man stabbed and wounded two Arab Israelis and two Palestinians in the southern Israeli city of Dimona.
Unrest has also spread to the Gaza Strip, with clashes along the border in recent days leaving nine Palestinians dead from Israeli fire.
Last evening, dozens of Gaza residents broke through the border fence and briefly entered Israel before being pushed back by troops, Palestinian witnesses said.
Medical officials said two men were injured by army fire.