Palestinian police in the West Bank say they're holding a militant leader accused by Israel of masterminding a suicide bombing in Jerusalem earlier this month.

Palestinian sources said the suspect, Iyad Hardan, a leader of Islamic Jihad, was picked up in Jenin last week.

He's accused of recruiting the two suicide bombers who killed themselves and wounded more than twenty Israelis in the attack at the Mahane Yehuda market.

Mr Hardan's detention follows the agreement concluded with Israel last month under which the Palestinians promised tougher action against militants.