The West Bank, among areas where Palestinians seek a state, has seen a surge of violence since Israel stepped up raids in response to a series of street attacks in its cities last year.

Troops carrying out arrests came under fire in Balata, near the northern city of Nablus, and shot back, the army said. The Den of Lions militant group said a local gunman was killed.

In the southern West Bank, a Palestinian stabbed a Jewish settler at a farm and was shot, Yochai Damri, the head of local settlements, told Israel's Army Radio. It was not clear whether the wounded settler or someone else fired the shots, he said.

The settler was taken to hospital in stable condition, medics said. The wounded Palestinian was later announced dead by the Palestinian health ministry.

(Writing by Dan Williams and Ali Sawafta; Editing by Alex Richardson and Jonathan Oatis)