Police lowered their alert level Wednesday evening following a general warning of a terror attack in the area between the towns of Modi'in and Rosh Ha'ayin in central Israel.

Large forces continued searching, however, the stretch of land between the two towns.

Heavy traffic was reported on the Jerusalem-Modi'in highway due to roadblocks set up by police.

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Earlier on Wednesday, Israel Defense Forces troops shot dead a Palestinian and arrested two others trying to sneak into Israel from the Gaza Strip, the army said.

Both attempted infiltrators, 15-years-old, were later freed, and hospitalized in stable condition, Palestinian officials said.

Palestinian security officials in Gaza said Israel had informed them of the incident and that the three had apparently been manual laborers trying to slip into Israel to find work.

An army spokeswoman said that before dawn, troops spotted three crouching figures near the dividing fence and when they ignored orders to halt and disregarded warning shots the soldiers fired at one of the group.