The incident comes with tensions already high over violence which has worsened in the Israeli-occupied West Bank this year.
The last anti-Israeli suicide blast occurred in Jerusalem almost seven years ago and wounded 21 people.
"During searches in northern Israel, security forces neutralised a terrorist armed with an explosive belt and multiple weapons in a vehicle," the army said.
That came after "an explosive device was detonated adjacent to the Megiddo junction on Monday, severely injuring an Israeli civilian", it tweeted, referring to an intersection of highways about 35 kilometres (22 miles) southeast of Haifa and several kilometres from the West Bank.
"An initial inquiry suggests that the terrorist crossed from Lebanon into Israel this week," the military said, adding: "The possible involvement of the Hezbollah terrorist army is under review."
Iran-backed Shiite group Hezbollah, considered a "terrorist" organisation by many Western countries, has a stronghold in southern Lebanon. The UN Interim Force in Lebanon (UNIFIL) acts as a buffer between Lebanon and Israel and operates near the border.
Monday's incident had been subjected to an army-imposed information blackout that was lifted Wednesday evening.
"He could have used the explosive belt in the first attack but chose not to," the army said in a press briefing.
"Our assumption is that he was aiming to conduct another terrorist attack," perhaps before committing suicide, it added.
The suspect allegedly had access to other weapons as well as the explosive vest.
Neither his identity nor nationality were released.
- Intercepted -
The suspected attacker is believed to have asked a driver to pick him up to take him back towards the north of the country, but he was intercepted on the way, according to the army.
The driver, whose identity was not revealed, is currently under interrogation but "many questions are going unanswered", it added.
UNIFIL was set up in 1978 to monitor the withdrawal of Israeli forces after they invaded Lebanon in reprisal for a Palestinian attack. Israel and Lebanon remain technically at war.
On Thursday, the United Nations Security Council is to discuss a resolution, adopted in 2006, for a "permanent ceasefire" between Israel and Lebanon.
Israel and Hezbollah fought a devastating war in 2006 after the group captured two Israeli soldiers.
In October last year, Lebanon and Israel said they had struck an "historic" deal to resolve a maritime border dispute involving offshore gas fields after years of US-mediated talks.
That led Hezbollah chief Hassan Nasrallah to say the group would end an "exceptional" mobilisation against Israel after threatening to attack for months.
In the West Bank, occupied by Israel since the 1967 Six-Day War, violence intensified last year but has surged during the tenure of Prime Minister Benjamin Netanyahu's government which took office in December, a coalition with ultra-Orthodox Jewish and extreme-right allies.
Since the start of the year, the Israeli-Palestinian conflict has claimed the lives of 81 Palestinian adults and children, including militants and civilians.
Thirteen Israelis, including three children and one policeman, and one Ukrainian civilian have been killed over the same period, according to an AFP tally based on official sources from both sides.
The announcement of the incident in Israel's north came as Netanyahu prepared to leave on an official visit to Germany, which has been shortened by a day. His office said he was closely following "the security developments".
Nobody crossed Lebanon-Israel border in recent days: UN peacekeepers
Beirut (AFP) March 16, 2023 -
The UN peacekeeping force in Lebanon said Thursday it had not observed any border crossings after Israel said it killed a suspect wearing an explosive belt who may have entered from Lebanon.
The Israeli army said on Wednesday it was probing the possible involvement of Lebanon's Hezbollah movement after troops "neutralised" the suspect following a blast that wounded a civilian in northern Israel on Monday.
The military said an initial inquiry suggested the suspect "crossed from Lebanon into Israel this week".
Hezbollah has not commented on the allegation.
The United Nations Interim Force in Lebanon (UNIFIL) "has not observed any crossing of the Blue Line in recent days", said spokesman Andrea Tenenti, referring to the frontier demarcated by the UN in 2000 after Israeli troops withdrew from southern Lebanon.
He said force commander Major General Aroldo Lazaro Saenz urged both sides to exercise restraint and use UNIFIL coordination mechanisms to "avoid misunderstandings and decrease tensions".
UNIFIL acts as a buffer between Lebanon and Israel, neighbours that remain technically at war and have no diplomatic relations.
The force operates in the south near the border, a Hezbollah stronghold.
The discovery of the explosive belt in Israel came with tensions already high over violence which has worsened in the Israeli-occupied West Bank this year.
There has been no suicide attack targeting Israelis since a bombing in Jerusalem almost seven years ago that wounded 21 people.
The suspected attacker is believed to have asked a driver to take him back to northern Israel, but he was intercepted on the way, the army said.
It released neither his identity nor his nationality.
Iran-backed Shiite militant group Hezbollah, considered a "terrorist" organisation by many Western governments, is the only Lebanese faction that kept its weapons after the end of the country's 1975-1990 civil war.
Israel and Hezbollah fought a devastating war in 2006 after the group captured two Israeli soldiers.
Lebanon and Israel agreed a deal last October to resolve a maritime border dispute involving offshore gas fields after years of US-mediated talks.
After the deal was struck, Hezbollah chief Hassan Nasrallah said the group would end an "exceptional" mobilisation against Israel after threatening to attack for months.
The Israeli prime minister at the time, Yair Lapid, said the agreement made conflict with Hezbollah less likely.
UNIFIL was set up in 1978 to monitor the withdrawal of Israeli forces after they invaded Lebanon in reprisal for a Palestinian attack. It was expanded after the 2006 war.
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