(CNN) -- Three Palestinians, including a Hamas operative, were killed and seven were injured during a confrontation with Israeli military forces in a Jenin refugee camp early Saturday, Palestinian security sources said.
A large number of Israeli troops and undercover operatives raided the refugee camp and surrounded a suspected militant's house inside the camp.
The troops shot at the house, the sources said, and the suspected militants returned fire.
The Israeli military said it was an operation by the Israel Defense Forces and Israel Security Agency to arrest Hamas operative Hamza Abu Alhija.
Abu Alhija was wanted for alleged involvement in shooting and bombing attacks against Israel, the Israeli military said.
According to Israel, it was Abu Alhija who fired first.
"During the mission, Abu Alhija barricaded himself with other operatives in his house," the Israeli military said. "Abu Alhija opened fire at the forces, wounding two security personnel, and then attempted to escape while continuing to shoot. The security personnel responded with fire."
Abu Alhija was killed in the shooting, Israeli forces said, along with two others.
Three of the injured are in critical condition, Palestinian medical sources said.
Thousands of Palestinians took part in the funeral procession in Jenin, north of the West Bank.