Three Palestinians have been shot dead after dozens of Israeli settlers attacked a Palestinian village in the occupied West Bank, Palestinian authorities say.

Video footage from Kafr Malik, near Ramallah, on Wednesday night showed a car and a home on fire and Palestinians running away as gunfire is heard.

The Israeli military said forces deployed to the scene found settlers and villagers throwing stones at each other. It added that several "terrorists" opened fire and threw stones at the forces, who returned fire and identified hits. They also arrested five Israelis.

The Palestinian foreign ministry said settlers fired at villagers in their homes during what it called their "terrorist assault".

The ministry also said Israeli forces prevented ambulance crews from reaching the wounded and obstructed fire crews from entering the village for several hours.