Palestinian gunmen infiltrated a Jewish settlement near the West Bank city of Hebron on Friday, killing two Israelis and wounding at least six others. Two gunmen were also killed in the attack.
The Israeli army and ambulance services said the attack took place in the settlement of Kiryat Arba, which has been a frequent target of Palestinian militants during the 29-month-old uprising.
Reports said two attackers were dressed as Jewish seminary students.
It is unclear who returned fire on the infiltrators but there is a heavy Israeli military presence in the area and many of the Jewish settlers are armed.
Palestinians view Jewish settlers as legitimate targets and militants often target settlers and their towns.
The attack on Kiryat Arba comes just days after Israeli Prime Minister Ariel Sharon's new government was sworn in, promising stepped up strikes against Palestinian militants.