They said: "A young Charedi man was walking around the street with his wife's head in his hands, covered in blood. No one understood what was going on and why he had so much blood on him."
Police arrested the man close to the scene of the tragic incident on Thursday.
Tiberias Mayor Yossi Ben David told Haaretz that the couple divorced recently and that the suspect had received services from the city's mental health department.
Mr Ben David said the man had immigrated to Israel a few years ago before converting to Judaism.
In a statement the Magen David Adom emergency medical service said: “At 12.13pm [we were] informed about a dead woman with severe signs of violence. Paramedics determined the death of a woman in her 30s.”
