Security forces are investigating the possibility of a third vehicle.
One of the terrorists killed was involved in the shooting attack that led to the murder of an Israeli civilian, Amnon Muchtar, in June.
The police and Shin Bet further added that the alertness levels had been raised throughout Gush Dan, and searches were being carried out in the area.
There is reportedly one casualty at the scene.
During searches by emergency services, the body of a lifeless man was found in an apartment near the location of the explosion.
Palestinian media reports claim that five people were killed in the strike on the Nur Shams camp.
Security sources say some of the arms are bound for the neighboring West Bank, adding that they have arrested several Jordanians linked to Palestinian militants.
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