The Palestinians face charges after attacking Israelis with an ax and attempting to run them over in February incident.
Lion's Den has been behind the killing of a number of Palestinians and claimed responsibility for several drive-by shootings in the Nablus area since 2022.
The investigation by the Shin Bet and the police found that the cell was working under the direct direction of Hamas in Turkey.
According to figures from the United Nations humanitarian agency OCHA, there were at least 220 attacks on Palestinians since the start of 2025.
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Two terrorists were arrested in the joint operation; both were from the northern West Bank town of Kabatiya, near Jenin.
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"The forces fired at the terrorists in order to remove a threat," the Ynet quoted the IDF as stating.
The suspect was arrested at a coffee shop in the heart of Kasbah in Nablus.
IDF evacuates central Gaza amidst intensifying hostage deal talks • Extremist Israelis penetrated Lebanon, and Joseph’s Tomb area in Nablus.