Israeli Arabs who are against Israel and in favour of the creation of a Palestinian state can move to Palestinian territory or Gaza, Israel's Prime Minister has said.

Benjamin Netanyahu made the comment after a Palestinian man stabbed an Israeli soldier in Tel-Aviv. Police said it could be a possible terrorist attack.

"To all those who demonstrate against Israel and in favour of a Palestinian state, I say something simple: I invite you to move there; we won't give you any problem," Netanyahu said, during a meeting of the Likud Knesset faction.

"The terrorists incite and want to evict us from everywhere," he said. "They don't want us in Jerusalem, not in Tel Aviv and not anywhere".

He added he had given orders "to use all the tools at our disposal, to the full extent of the law ... including the destruction of the houses of terrorists."

"This is not the time for schismatic talk. The more unified we are the stronger we will be – and that's what Israel needs today."

The Tel-Aviv stabbing was followed by two other attacks. The second occurred near a settlement in the West Bank, where a 25-year-old woman died after she was stabbed by a man, who also injured two other people.

A few minutes later, a man was arrested in Jerusalem for attempting to stab an Israeli security guard.