"The whole mosque was burned — the carpet, the books, the Qur'ans, all burned," the village imam, Fuad Zangariya, told Army Radio. Zangariya said the words "Palmer" and "revenge" were sprayed on the entrance to the mosque.

Last week police said a car crash on Sept. 23 which killed Asher Palmer, a Jewish occupier, and his one-year-old son was caused by Palestinians who threw stones at the car.

Israeli police said the mosque was badly damaged, its carpets and interior burned and the Hebrew words "Price Tag" sprayed on its wall. Israeli Prime Minister Benjamin Netanyahu condemned the attack, saying it offended the nation's core values.

For some hard-line Jewish settlers, the "Price Tag" slogan signifies payback for any Israeli curbs on occupation in the West Bank, which Israel captured in a 1967 war and where Palestinians hope to create an independent state.

Two mosques were vandalized in the territory last month following partial demolitions by the Israeli Army in an "unauthorized Jewish settlement."

"This incident has 'Price Tag' characteristics and we have set up a special task force to investigate it," Ran Levi, head of a local police station, told Army Radio.

Jamal Zangariya, a resident of the village, told Israel Radio: "We believe extremists from outside the village did it."