Israeli troops killed a Palestinian militant and arrested another during a raid in the occupied West Bank on Friday, witnesses and medical officials said.

They said soldiers surrounded the hideout of an al-Aqsa Martyrs Brigades member in Balata refugee camp near the city of Nablus, and called on him to surrender. He refused, and the troops opened fire on the building, witnesses said.

The militant - whose group is an armed wing of Palestinian President Mahmoud Abbas's Fatah faction - was killed, medical officials said. A member of another Palestinian faction, Islamic Jihad, was also in the building and was wounded and arrested.

An Israeli army spokeswoman confirmed there had been an operation in Balata in which one militant was killed and another captured.

Israeli forces frequently raid West Bank towns in search of militants suspected of involvement in attacks against the Jewish state. Palestinian officials have said such operations undermine their attempts to assert security control in the territory.