Palestinian security sources say Israel troops are withdrawing from the West Bank city of Nablus after two days of house-to-house searches for militants and bomb factories.
The sources say the Israeli forces began leaving Nablus late Monday.
However, the Israeli military has not confirmed that the operation is completely over.
Israeli troops entered the densely populated Palestinian city early Sunday and detained dozens of people. They imposed a curfew that confined about 50,000 Palestinians to their homes.
Palestinians say Israeli gunfire Monday killed one Palestinian man and wounded several others.
The Israeli military said soldiers have uncovered at least three explosives laboratories.
Palestinian officials have condemned the operation, saying it could spark a new cycle of violence and undermine efforts to revive the peace process.
Israel, which describes Nablus as a terrorist hub, says the operation has been essential for defending Israeli citizens.
Some information for this report was provided by AFP, AP and Reuters.