Israeli police have reported a stabbing attack at a bus stop near a settlement in the West Bank, killing a 25-year-old woman and wounding two other people, one seriously and the other lightly.

After attempting to ram people with his car, the attacker left the vehicle and proceeded to stab three bystanders.

The assailant was then shot and seriously wounded at the entrance to the Alon Shvut settlement, according to Israeli police spokesman Micky Rosenfeld.

The attacker has been provisionally named as Mahar al-Hashmalud, an Arab-Palestinian from the flashpoint West Bank city of Hebron. Early Israeli reports indicate that Hashmalud was a former prisoner and an activist of the Islamist faction Hamas.

The incident represents the second attack on Israeli citizens in the same day after an Israeli soldier was stabbed and seriously wounded outside a train station in Tel Aviv.

The attacker in the first incident, a Palestinian from the town of Nablus in the occupied West Bank, was arrested by police after a struggle which left the man "slightly injured".

He has been identified as 18-year-old Nour al-Din Abu Khashiyeh, from the Askar refugee camp in the West Bank city of Nablus. Authorities said the attack was apparently politically motivated.

Eyewitnesses said the man was stabbed in the stomach and lost a lot of blood, Ynet reported.

A third attempted stabbing attack took place in Jerusalem just minutes after the murder of the 25-year-old woman in the West Bank. An Arab-Israeli attempted to stab a security guard on the Light Rail in Jerusalem but was caught and arrested.

Israeli Prime Minister Benjamin Netanyahu reacted to the stabbing attacks and the demonstrations against Israel by telling those with a problem to "move to the Palestinian Authority or Gaza".

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

"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."