The Shin Bet internal security service said Khalida Jarrar was arrested along with a Palestinian activist near the West Bank city of Ramallah for "promoting terror activities," without elaborating.
Jarrar, 55, is a popular figure among Palestinians and is known for fiery speeches against Israel. In 2015, Israel sentenced her to 15 months for incitement to violence.
Her husband, Ghassan said forces seized computers in Sunday's raid.
Jarrar is a senior member of the Popular Front for the Liberation of Palestine, a left-leaning faction opposed to peace with Israel. The group was involved in hijackings and other major attacks in the 1970s but has largely scaled back its militant activities in recent years.