Police spokesman Micky Rosenfeld says the today raid was aimed at stopping the men from carrying out an attack on Israeli targets that they were suspected of planning. He says Israeli forces opened fire on the men in their vehicle. He did not have further details on the shooting.
He said a number of explosive devices and two guns were found in the men's vehicle.
Rosenfeld said that forces were searching the area for other suspects.
The violence comes as Israel and the Palestinians are conducting US-brokered peace talks. An uptick in deadly violence between Israelis and Palestinians recently is undermining the faltering negotiations.