JERUSALEM, DEC. 2 -- Three Palestinians boarded an Israeli bus near Tel Aviv this morning and attacked its passengers, fatally stabbing one and wounding three, police said. One of the Arab assailants was shot dead by a policeman, and the other two were injured and captured.

The incident, which continued a recent wave of attacks by Arabs inside Israel and along its borders, came as militants called for increased violence this week to mark the end of the third year of the intifada, or uprising against Israeli rule of the West Bank and Gaza Strip, which began Dec. 8, 1987.

Police said the three Arab assailants were from Azzun in the West Bank. They boarded the regular passenger bus in Petah Tikvah, a bedroom community east of Tel Aviv, and rode it several stops until it reached Jabotinsky Street, in the ultra-Orthodox Bnei Brak neighborhood, police said.

As the bus stopped at an intersection, the three men drew knives, and while shouting "God is great!" began stabbing passengers, police said. The most seriously wounded was a 24-year-old Jewish religious institute student from Jerusalem who later died of stab wounds to the heart and lungs, authorities said. The other victims, two 18-year-old women and a boy, 15, received chest wounds and were reported recovering in a hospital.

The attackers were stopped by the bus driver, who drew a gun and ordered them to sit down, police said. After the passengers had been let off, an Israeli anti-terrorist policeman driving behind the bus boarded it with his Uzi submachine gun drawn. Police said one of the Palestinians charged the policeman, who fired and killed him.

Witnesses and hospital reports said both of the other Arabs were injured. One was reported shot in the hand, apparently by the policeman, and the second was beaten by a crowd of Israelis outside the bus as he was being led away. Israeli radio said one bystander was detained after assaulting the suspect.

Police were deployed along arteries in Jerusalem tonight to head off revenge attacks against Palestinians. Jewish crowds have assaulted Arabs in Jerusalem on several occasions in the last three months, killing one man and injuring a number of other people.

Today's was the second fatal clash between Israelis and Palestinians in as many days. A wave of violence in the last two months has killed 15 Israeli civilians and soldiers and several dozen Palestinians. Saturday, a Palestinian woman was shot to death in Jerusalem after she allegedly attempted to stab a policeman, and a grenade was thrown from a car at a busy Tel Aviv intersection but it failed to explode.

By most accounts, the cycle of violence was touched off by the killing of 17 Palestinians by Israeli police on Oct. 8 in clashes at Jerusalem sites sacred to both Moslems and Jews. But Israeli government spokesmen also connect the violence to the Persian Gulf crisis, which they say has caused Palestinian extremist groups allied with Iraq to plan and incite attacks.

"What happened this morning is another example of the violent incitement of the Arabs toward fundamentalism and extremism," said Avi Pazner, a senior aide to Prime Minister Yitzhak Shamir. "This has been going on from the beginning of the gulf crisis, and Israel is facing wave after wave of terrorist attacks."

Israeli officials, who have been struggling to prevent any linkage between the gulf crisis and the Israeli-Palestinian conflict, expressed concern today about Iraq's declaration that it would insist on raising the Palestinian question in any dialogue with the United States.

One right-wing minister, Yuval Neeman, told Israeli radio after the cabinet's weekly meeting today that he was afraid U.S.-Iraqi negotiations would be carried out at Israel's expense, with the Bush administration promising action against Israel as part of a settlement with Saddam.

"What I'm afraid of," Neeman said, "is that once" Secretary of State James A. Baker III "talks to Saddam Hussein, and once the Iraqi ambassador talks to {President Bush}, it will be hard to stop the dynamics of that kind of situation."

However, officials close to Shamir publicly played down these concerns, saying they were satisfied with an assurance given by Vice President Quayle to Israel's ambassador to Washington, Zalman Shoval, that the Bush administration would continue to resist any connection between the gulf and Palestinian issues.

Foreign Minister David Levy said he received a message from Baker Saturday night reassuring Israel that recent U.S. actions in the gulf crisis did not alter Washington's overall strategy or its policy on Israel.