A passer-by defused a bomb he found in a Jerusalem rubbish bin just before it was to go off.
The bomb, consisting of two mortar shells, was connected to a mobile phone, the apparent timer.
The Israeli man ripped the wires connecting the phone to the mortar shells before alerting police.
Moments later, the phone rang, with the ringing apparently meant to set off the bomb.
The incident began when an Israeli woman saw a pedestrian throw a bag into the bin in the ultra-Orthodox Jewish neighbourhood of Mea Shearim.
It was her brother who opened the bag and defused the explosives.
Police closed off the area and dismantled the bomb altogether.
Two Palestinians found in the area have been detained for questioning.
Israeli security has been on high alert in recent weeks for possible bombings by Palestinian militants.