Israeli occupation forces set up roadblocks and deployed around a major Palestinian city in the West Bank on Wednesday in a manhunt for attackers who shot dead an Israeli settler.

Raziel Shevah, a 35-year-old rabbi, was killed late Tuesday while driving near the wildcat settlement where he lived, Havat Gilad near the northern West Bank city of Nablus.

Some 22 gunshots were found in his car, Israel's army radio reported. The gunshots reportedly came from a passing vehicle.

"Entrances and exits to and from the villages surrounding Nablus will be possible only after security checks," the military said in a statement.

"The review of the incident is ongoing. Based on situation assessments, it was decided to reinforce the area with additional forces."

The area frequently sees tensions between Israeli settlers and Palestinians.

Nablus is the largest Palestinian city in the West Bank with a population over 150,000.

Palestinians estimate the number of Israeli settlers in the West Bank at 750,000.

Palestinian security sources said they were not aware of any arrests yet, but added that Israeli settlers in the area had thrown stones at Palestinian cars.

Sporadic unrest has occurred since US President Donald Trump provoked Palestinian anger by recognising Jerusalem as Israel's capital on December 6.

Fourteen Palestinians have been killed and hundreds wounded since in clashes with Israeli occupation forces since Trump's announcement.

*This story was edited by Ahram Online