A Palestinian Authority (PA) Arab was arrested on Thursday morning near the Binyamin-area town of Kokhav Ya'akov.
Police arrived at the scene after a firefighter called the police hotline to report a suspicious man walking around near the town's entrance.
Special Patrol Unit police officers arriving at the scene located the man, who attempted to escape. With the help of the firefighter who first reported the suspect, the Israeli policemen managed to capture the suspect.
A search of the suspect's body revealed a bag containing both knives and a Quran. When questioned, the suspect said he had planned to give the bag to another PA Arab, to allow him to carry out a terror attack.
Israel Police are still interrogating the suspect, and are trying to locate the Arab to whom he intended to give the bag.