Fighting broke out on Sunday when Israeli forces entered the town of al-Yamun, west of the city of Jenin in the West Bank, an Aljazeera correspondent said.
There were no immediate reports of casualties in the raid, which Israeli forces launched to arrest wanted men.
Earlier on Sunday, the Israeli military entered the old town of Nablus.
At about 3 am, Israeli forces surrounded the al-Yasmina neighbourhood in the old town and imposed a curfew, Aljazeera correspondent Hasan al-Titi reported. No arrests were made, and no casualties have been reported.
Israeli forces searched houses and a field clinic in Diwan al-Dari for wanted men, including Fadi Qatisha, the military said.
The Israeli forces redeployed and Nablus is now calm, Aljazeera's correspondent said.
Rocket hits southern Israel
A rocket fired from the Gaza Strip hit the southern Israeli town of Sderot early on Sunday, without causing casualties, an Israeli military source said.
The rocket blew out the windscreens of several cars and destroyed electric pylons, causing power cuts in the Negev desert town.