Palestinian officials said Israeli forces shot dead two Palestinians in the occupied West Bank on Monday, as Israeli police confirmed undercover agents had killed a wanted man in the territory.

The Palestinian health ministry in Ramallah named the dead men as Adam Salahuddin Mansour Faraj, 23, and Mutaz Khaled Sadiq Nabulsi, 28.

Israeli police said undercover officers had killed "a senior wanted man" in the Balata refugee camp near Nablus.

"The undercovers entered the area near the refugee camp in broad daylight and closed in on an event hall where the wanted person was staying," the force said in a statement.

"As soon as the wanted person noticed the fighters (agents), he started trying to escape on the roof of the building with a weapon in his hand.

"The undercovers killed the wanted person by shooting" on the roof, the statement said, without identifying him.

The incident triggered an exchange of fire between the undercover agents and "armed terrorists in the area who shot at the force and threw explosives", the police said.

The Palestinian health ministry said Israeli police took one of the bodies with them.

The Palestinian Red Crescent confirmed that two men were killed in an Israeli raid, adding that one belonged to a Palestinian militant group.

Nine others were wounded by Israeli forces in the raid, it added.

The West Bank, which Israel has occupied since 1967, has seen a surge in violence for more than a year, but particularly since the Israel-Hamas war erupted on October 7.

At least 523 Palestinians have been killed in the West Bank by Israeli troops or settlers since the Gaza war broke out, Palestinian officials say.

Attacks by Palestinians have killed at least 14 Israelis in the West Bank over the same period, according to an AFP tally of Israeli official figures.