Prime Minister Benjamin Netanyahu defended the Israeli occupation army Sunday as controversy gripped the country over a soldier caught on video shooting a Palestinian in the head as he lay on the ground.

The incident on Thursday led to the soldier's arrest and strong condemnation from military officials, but some rightwing politicians and their supporters have reacted angrily to the response.

Netanyahu on Thursday joined condemnations of the soldier's behaviour but appeared to backpedal slightly Sunday in remarks at the start of a cabinet meeting.

"Any challenge to the morality of the IDF (Israel Defence Forces) is outrageous and unacceptable," he said.

"The soldiers of the IDF, our children, maintain high ethical values while courageously fighting against bloodthirsty murderers under difficult operational conditions.

"I am certain that in all cases, as in the current one, the inquiry takes into account all conditions. We must all support the IDF chief of staff, the IDF and our soldiers, who safeguard our security."

Netanyahu leads one of the most rightwing governments in Israeli history but holds only a one-seat majority in parliament.

Video from Thursday's incident in Hebron in the occupied West Bank spread widely online and threatened to further inflame tensions amid a wave of violence that erupted in October.

It was the latest incident in an almost six-month long surge of Israeli-on-Palestinian deadly repression met with violent responses by Palestinians against settlers and Israeli soldiers.

The recent surge in violence has raised concern of wider escalation, a decade after the last Palestinian uprising subsided.

Since the start of October, Israeli occupation forces have killed at least 200 Palestinians. Meanwhile, almost daily stabbings, shootings and car-ramming attacks by frustrated and unarmed Palestinians have killed 28 Israelis.

The video showed a 21-year-old Palestinian, who along with another man had allegedly stabbed a soldier minutes earlier, lying on the ground, apparently after being shot.

The soldier then shoots him again, in the head, without any apparent provocation. The Palestinian, Abdul Fatah al-Sharif, was killed.

Sarit Michaeli, a spokeswoman for Israeli rights group B'Tselem, which posted the video, called it an "execution".

The UN's special coordinator for the Middle East peace process, Nickolay Mladenov, called it "a gruesome, immoral and unjust act".

The soldier was detained, and Defence Minister Moshe Yaalon vowed that the incident would be treated with "utmost severity".

But far-right politicians, including Education Minister Naftali Bennett, have defended the soldier, while members of his family reportedly said he was being publicly "lynched" and would not receive a fair trial.

Bennett questioned whether the soldier thought the Palestinian had explosives on him, though there were reports that he had already been checked for a suicide belt before the shooting.

"The soldier is not a murderer," Bennett wrote on his Facebook page.

"Have we lost our minds? We are at war, a war against brutal terrorism."

Several dozen people protested to call for the soldier's release over the weekend, Israeli media reported, while posters were seen calling for military chief of staff Gadi Eisenkot's resignation.

Settlement-building, racial discrimination, confiscation of identity cards, long queues at checkpoints, as well as daily clashes and the desecration of Al-Aqsa mosque, describe Palestinians' daily suffering.

The surge in violence has been fuelled by Palestinians' frustration over Israel's 48-year occupation of land they seek for an independent state, and the expansion of settlements in those territories which were captured by Israel in the 1967 Middle East war.

Palestinian leaders say a younger generation sees no hope for the future living under Israeli security restrictions and with a stifled economy. The latest round of US-brokered peace talks collapsed in April 2014.

*The story has been edited by Ahram Online.