Israel soldiers allegedly 'sought revenge' with IED on Palestinian home near Bethlehem

Israeli soldiers allegedly "sought revenge" for the recent kidnapping of an Israeli's body by attacking a Palestinian house in the occupied West Bank.

The three soldiers, members of the Druze minority faith, were arrested on Monday on suspicion of throwing an improvised bomb at a Palestinian home, Israeli newspaper Haaretz reported.

It is not clear whether the device detonated.

The Israeli military said in a statement that it had launched an investigation into the attack on Palestinians near Bethlehem on Monday by Israeli Druze soldiers but could not provide further details.

Israel's Defence Minister Benny Gantz said if it came to light that the incident was an act of revenge, the military is dealing with a "severe incident which requires accountability".

"Israeli soldiers don't take the law into their hands and exact revenge," Gantz tweeted.

It comes after Tiran Fero, a Druze Israeli aged either 17 or 18 according to differing reports, died following a car accident in the occupied West Bank last week.

Fero had been taken to a hospital in the city of Jenin following the accident.

His body was taken by Palestinian fighters from the hospital, according to his family.

According to local sources, the fighters informed Palestinian Authority officials in Jenin that they would hold the body until Israel releases the bodies of killed Palestinians, some of which have been retained for several years.

"As a result of the efforts of the security forces and in coordination with the Palestinian authorities, the body of an Israeli man killed in a car accident in Jenin on Tuesday was transferred to his family in Israel," the Israeli army said in a statement.

Israel currently holds the bodies of some 250 Palestinians killed since 1967, including 105 since 2015.

Reuters and agencies contributed to this report.