Jerusalem, Jul 16 (IANS): Israel's military said that its troops have arrested four Palestinian "terrorists" and thwarted an attack in the West Bank.

According to the military, the incident took place on Wednesday near the city of Nablus in the northern West Bank, reports Xinhua news agency.

"Two Molotov cocktails and an improvised explosive device were found in their possession and they appeared to have been on their way to perpetrate a terror attack," a military spokesperson said in a statement, adding that the suspects were taken for further questioning.

The military warned it will "continue operating in order to preserve the security in the region, thwart any terror attempts and apprehend terrorists".

The incident came amidst tensions in the region sparked by Israeli Prime Minister Benjamin Netanyahu's intention to annex the Jordan Valley which makes up some 30 per cent of the West Bank.

The territory was seized by Israel during the 1967 Middle East war.

The Palestinians, who claim all of the West Bank, Gaza and East Jerusalem, have rejected the idea.

More than 600,000 Jews live in about 140 settlements in the West Bank and East Jerusalem.