The Israeli military has carried out a wave of West Bank arrests following a deadly stabbing attack against an Israeli family.

Forces arrested 29 people, including nine members of the Hamas militant group, forces said.

A 20-year-old Palestinian assailant infiltrated the settlement of Halamish late on Friday surprising a family during their Sabbath dinner.

He stabbed to death Yosef Salomon and his adult children, Chaya and Elad. A neighbour, an off-duty soldier, heard the screams, rushed to the home and opened fire, wounding the attacker.

Israel fortified its troops in the West Bank and placed forces on high alert after the attack.

It followed a day with some of the worst Israeli-Palestinian clashes in years, which erupted over tensions at the Holy Land's most contested shrine.

Israel has installed new security cameras at the entrance to the shrine as it considers an "alternative" to the metal detectors which sparked a weekend of violence.

Israel set up the new security measures last week after Arab gunmen opened fire from the shrine, killing two Israeli policemen.

It says they are a necessary measure to prevent more attacks but Muslims allege Israel is trying to expand its control at the Muslim-administered site and have launched mass prayer protests. Three Palestinians were killed in street clashes.