Dramatic footage has emerged showing the moment an undercover Israeli force arrested a key member of the Hamas cell which murdered Eitam and Naama Henkin in front of their children - from the middle of Palestinian Authority-controlled Shechem.

Karam Lutfi Fathi Razek was among five terrorists responsible for the murder, but was injured in the process by another fellow terrorist, who accidentally shot him in the hand.

Investigators now believe that blunder saved the lives of the Henkin's four young children, who were sitting behind them as the terrorists moved in to "confirm the kill" at point-blank range.

Razek dropped the pistol he was holding and all four terrorists fled the scene immediately after he was shot; a fifth terrorist had stayed behind after securing the route.

The CCTV footage from a hospital in Shechem (Nablus) shows a commotion, followed by two armed men - undercover Israeli officers - running briefly into view.