A lawyer representing Palestinians attacked on Thursday a ruling by the Israeli Supreme Court that he said could enable confiscation of east Jerusalem property owned by residents of the occupied West Bank.

The April 15 decision brings such assets within the scope of the 1950 "Absentee Property Law," which places in state custody all property inside Israel owned by Arabs who were living outside the state at the time of its founding in 1948.

The name of a Palestinian teen burned alive by his Jewish kidnappers has been removed from a memorial to victims of terror attacks, an Israeli official said Wednesday, after family objections.

Haim Pitoussi, spokesman of the National Insurance Institute which administers the memorial wall in Jerusalem's Mount Herzl national cemetery, confirmed that the name of Mohammed Abu Khder, 16, had been erased.

Israel's defense ministry on Tuesday inscribed the name of a Palestinian teenager burned alive by his Jewish kidnappers on a memorial wall listing the victims of terror attacks. 

The move took place as Israel was to begin marking memorial day for fallen soldiers and the victims of terror attacks, which begins at sundown. 

A Palestinian driver deliberately rammed his car into a Jerusalem bus stop this week and killed an Israeli man in a "horrible attack", police chief Yohanan Danino said on Saturday.

"Today we can say that it is a horrible attack," Danino said in a statement after an investigation into Wednesday's incident.

Protesters clashed with Israeli troops in the northern West Bank on Friday during annual demonstrations marking Palestinian Prisoners Day, an AFP correspondent said.

More than 100 Palestinians rallied near Israel's separation barrier in the village of Bilin, with some throwing stones before soldiers opened up with tear gas to disperse the crowd.

Israeli troops shot dead a Palestinian man in the West Bank on Friday when they opened fire during the funeral of a Palestinian recently released from Israeli jail, medics said.

Two other Palestinians were wounded when Israeli troops opened fire to quell protests that erupted in Hebron after the burial of the man, who had died shortly after leaving prison, the medics said.

Palestinian police have for the first time been deployed in three areas of the West Bank near annexed east Jerusalem, Palestinian and Israeli sources said on Thursday.

"For the first time, members of the Palestinian police wearing uniform and carrying weapons have been deployed in Abu Dis, Al-Ram and Bido," Palestinian police spokesman Louay Erzikat told AFP, saying the deployment had begun on Wednesday.

Gaza's Hamas-run security services have arrested a radical Salafist sheikh, accusing him of membership in the Islamic State (IS) group, a security source said on Monday.

"Adnan Khader Mayat from the Bureij refugee camp (in central Gaza) was arrested as part of an investigation," the source told AFP, speaking on condition of anonymity and without giving further details.

An Israeli committee has approved controversial plans for eventual construction of 2,200 Palestinian homes in occupied east Jerusalem, a spokeswoman said Wednesday, in the largest such project since 1967.

NGO Ir Amim described the plan to develop the Arab al-Sawahra neighborhood as the largest planning procedure for east Jerusalem Palestinians since Israel seized the territory in the Six-Day War.

The Palestinians formally gain membership of the International Criminal Court on Wednesday with the aim of pursuing Israelis for war crimes, despite uncertainty over the move's wider ramifications.

The accession is another step in the Palestinian diplomatic and legal international campaign, which gained steam in 2014.