Palestinian media reported that multiple clashes took place in the area, shortly after the troops had raided the town. The Israeli military made no comment on the event.
This is the fourth terror attack to take place in the last week, resulting in 11 people being killed. It is known to be the worst terror wave in recent times.
Security forces have been ordered to crack down on any potential terror attacks, and are also on high alert after the recent terror attacks in, Beersheba, Hadera and Bnei Brak.
A large arrest operation was carried out by Israeli police in the West Bank city of Jenin, also on Thursday morning.
The operation saw a gun-fight between Israeli commandos and Palestinian gunmen resulting in the death of two Palestinian men, and a further 14 Palestinians injured during the operation. An Israeli soldier was minorly injured and taken to hospital according to a statement from the military.
The holy month of Ramadan could further raise tensions, warned officials, but Israeli cabinet ministers have decided not to initiate a crackdown over Ramadan, over fears of escalating violence.