But a Jordanian intelligence official, speaking on condition of anonymity because he was not authorized to discuss the issue with reporters, said the arrangements announced by Kerry have not yet been discussed in detail.
Among the key questions that remain are when the system will go into effect and who will do the monitoring. Israeli police already maintain hundreds of security cameras in Jerusalem's Old City.
The Al-Aqsa compound is both a religious and national symbol for the Palestinians, and conflicting claims to the site have triggered violence between Israelis and Palestinians in the past.
The latest unrest began in mid-September after Palestinians accused Israel of plotting to take over the site. Such accusations were fueled by increased restrictions on Palestinian worshippers and a growing number of visits to the compound by Jewish groups seeking prayer rights, which are backed by senior Israeli politicians.
Clashes repeatedly erupted between Palestinian protesters hurling rocks and firebombs and Israeli police, who responded with stun grenades. The violence quickly spread across Israel and into the West Bank and Gaza.
In the past five weeks, at least 53 Palestinians and nine Israelis have been killed. More than 1,500 Palestinians have also been injured in clashes with Israeli forces, forcing the Red Crescent to declare an emergency.
Israel has accused Palestinian political and religious leaders of spreading lies and inciting violence. Palestinians say the violence is the result of nearly 50 years of occupation and a lack of a political horizon toward statehood.
In his comments Saturday, Kerry gave little indication that he plans to address these deeper issues. Kerry had previously engaged in months of shuttle diplomacy aimed at reviving talks on a final peace deal, but those efforts collapsed in the spring of 2014.
Israel captured the holy site from Jordan in the 1967 Mideast war. But under a decades-old agreement, Jordan maintains custodial rights over the Muslim holy sites through Waqf, and since signing a peace treaty with Israel in 1994, has often served as a mediator. When similar tensions erupted last year at the same site, Jordan briefly withdrew its ambassador from Israel and tensions subsequently abated.
Al Jazeera with Associated Press