Shin Bet said in a statement it had along with special police forces killed "two members of a Salafist jihadist network late yesterday that was active in the area and planned an attack" after an attempt to detain them.
An AFP correspondent said the army had sealed off the area and was searching for a third suspect who apparently had been in a car with the two when the shooting took place.
The Shin Bet statement said its forces had found "two pistols and a number of demolition blocks (explosives)" in the car.
Prior to yesterday's incident, "a number of members of the network were recently arrested" near Yatir in the southern West Bank and the northern city Nablus.
Based on its interrogation, the Shin Bet established that "the members of the network planned a series of attacks against Israeli targets and the Palestinian Authority."
The statement noted that in recent months the members of the network "were establishing a broad military infrastructure, including preparing safe houses, purchasing arms and producing explosives".
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