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Police in Tel Aviv on Sunday called off a terror alert after having carried out extensive searches in the south of the city for a suspected terrorist.

Police were acting on an intelligence warning of a man in the area believed to be involved in terrorist activities.

Two weeks ago, two police officers were lightly wounded in Jerusalem when an Arab bulldozer driver overturned their police car and rammed it into a bus, before being shot by police and a taxi driver. He later died of his wounds.

The attack was the fourth of its kind over the past year. Police sources said this showed Israel has not established suitable deterrence.