The Israeli army
pulled out of the northern West Bank town of Jenin after an incursion that lasted several hours and left one Palestinian man dead.
Palestinian security officials said one 55-year-old civilian was killed in his home by Israeli fire, while two others were injured.
Ten people, including the local leader of the hardline Islamic group Hamas, were arrested, they said.
Shooting broke out as Israeli armoured units backed up by helicopters rolled into the town.
An Israeli army spokesman confirmed the incursion and said six Palestinians wanted for "terrorist activities" had been arrested in Jenin, which he declared a "closed military zone". The spokesman said eight other Palestinians were arrested in the West Bank.
Hours before the incursion a Palestinian suicide bomber had killed two Israelis, including a toddler, in an attack on a shopping mall in a Tel Aviv suburb.
The Palestinian leadership denounced the blast, saying: "It gives the Israeli army reasons to continue their aggression and occupation".
AFP