Udai Al Azizi, allegedly a leader in the Nablus-based terrorist organisation Lions' Den, turned himself in to the Palestinian Authority (PA) on Friday, according to Israeli media reports.
But conflicting Palestinian reports say the man was not a senior figure in the militant group, while others maintain that he was arrested by the PA.
The Jerusalem Post reported Al Azizi gave himself up fearing he would be assassinated by Israeli forces.
Lions' Den first appeared in Nablus in 2022. The disparate and flat structure of the group has led to fears within Israel's security establishment that a new generation of Palestinians who are disillusioned with PA rule are launching often ad-hoc attacks against Israeli targets.
The organisation has claimed responsibility for several attacks against Israeli forces and civilians.
Former senior commander in the Israeli military Brig Gen Amir Avivi told The National that the army's operations "continue to put a lot of pressure on terrorists".
"Those who realise that it is just a matter of time until they will be arrested choose in some occasions to turn themselves to the PA knowing they will be treated very well there," he added.
"Unfortunately for the PA they are heroes and treated as such. The PA pays billions to martyrs and their families and see them as heroes."
In early April, video footage emerged of the group killing a Nablus resident, who they accused of being a traitor for working with Israeli security services.
Lions' Den surfaced in August after the killing of Ibrahim Al Nabulsi, a prominent militant in Nablus.
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