The leader of an Israeli settler organisation has hit two Palestinian boys with his car after they hurled stones at his vehicle in the Arab neighbourhood of Silwan in occupied East Jerusalem.

According to the Israeli daily Haaretz, David Be'eri was in his car with his son as the Palestinian children hurled stones at them on Friday. He hit the children while trying to get away.

The two masked boys, Imran Mansur, 11, and Iyad Gheit, 10, were standing in the road among a group throwing stones when a car drove round the corner and ploughed into them, witnesses at the scene said.

Mansur was thrown into the air and bounced off the car's windscreen before crashing to the ground. The car stopped briefly before driving off.

He suffered a broken leg, while the other boy was taken to hospital to have glass removed from his arm.

The incident occurred after Friday prayers, raising tensions in the area that has seen regular clashes between hardline Jewish settlers and local residents.

Be'eri is a well-known right-wing activist and is the director of Elad, a settler organisation that runs the City of David in East Jerusalem.

He was taken in for questioning by police and released on bail. Israeli police officers say the investigation against him will continue.