"I commend the actions of the soldiers who eliminated two terrorists who opened fire on them near Elon Moreh" an illegal Jewish settlement near the West Bank city of Nablus, Gallant said on Twitter.

He added the troops had "prevented an attack on Israeli civilians".

A senior Palestinian official told AFP that he had been informed of the death of the two Palestinians, who were not immediately identified.

In a statement, the Israeli army said "armed assailants fired shots from a vehicle at the Elon Moreh post."

Soldiers "fired toward the vehicle and neutralised two armed assailants," it added.

The army said it had seized two M-16 rifles and a handgun.

Violence has surged in the region over the last week as the Muslim fasting month of Ramadan, Jewish Passover and Christian Easter coincided.

The conflict has this year claimed the lives of at least 96 Palestinians, 19 Israelis, one Ukrainian and one Italian, according to an AFP count based on Israeli and Palestinian official sources.

These figures include, on the Palestinian side, combatants and civilians, including minors, and on the Israeli side, mostly civilians, including minors, and three members of the Arab minority.

Israel has occupied the West Bank since the 1967 Six-Day War.