Surveys show militant groups are growing in popularity
Access to the al-Aqsa mosque compound in East Jerusalem is being severely restricted.
Police spokesman Shmuel Ben Ruby said only men over 40 who hold an Israeli identity card would be allowed in.
The restriction bans entry to all Palestinians living in the West Bank, except these who live in Arab east Jerusalem, which was annexed by Israel in 1967.
Security cooperation meetings between Palestinians and Israelis are also due to start on Friday.
But BBC Jerusalem correspondent Kylie Morris says the mood is tense after five Palestinians were killed by Israeli fire in the Gaza Strip on Thursday.
About 1,000 additional police will be deployed across the city, around the old city entrances and around the mosque itself.
Controversial visit
In Gaza City, black and white posters declare that the intifada should continue until Israeli occupation ends.
The uprising broke out on 28 September last year when Palestinians frustrated with the direction of the peace process rioted after then Israeli opposition leader, now prime minister, Ariel Sharon visited the compound.
The al-Aqsa mosque is the third holiest site in Islam, while Jewish people regard it as their holiest, believing the remains of the first and second Jewish temples lie beneath.
More than 800 people have lost their lives in the second intifada, including more than 600 Palestinians and more than 160 Israelis.
A UN report estimated that the conflict had cost the Palestinian economy around $2bn.
And the intifada has caused a shift in Palestinian politics, with surveys showing an increase in popularity of Islamist militant groups like Hamas and Islamic Jihad
Increased pessimism
Three people were killed and dozens wounded in a gun battle on Wednesday night near the Rafah refugee camp in the Gaza Strip.
On Thursday a 15-year-old boy was shot dead by Israeli soldiers, who then killed a Palestinian man wandering near a Jewish settlement. Palestinian officials said the man, who was mentally disturbed, was riddled with bullets.
The latest deaths have increased pessimism about an accord which many already believe has little chance of success.
The Palestinians accused Israel, which on Thursday marked the holiest day in the Jewish calendar - Yom Kippur - of attacking Rafah in the hope of destroying any chances for peace.
Under intense US pressure, Israeli Foreign Minister Shimon Peres and Palestinian leader Yasser Arafat met on Wednesday for the truce talks, which ended in an agreement to consolidate the shaky ceasefire, but no joint press conference.
Washington believes that peace in the Middle East will bolster its efforts to build an anti-terrorism global coalition, hoping to get Arab states on board.