Including the most recent deaths, about 50 Arabs have been killed in violent, crime-related incidents this year, up from 27 last year.
Paramedics are on scene giving treatment to one other person who is in serious condition.
Reports cited the police as saying the two victims were visiting from Israel but did not note whether they were Palestinian.
The shooting took place in a campus area where several schools, for both children and adults are located. Police said students were held indoors at the affected school and also at nearby schools.
Some 230 Arab Israelis were murdered in 2024, according to Abraham Initiatives data. In comparison, in 2022, 116 Arabs were killed in Israel, while in 2021, 126 were killed.
Dandis went to Nahal Telem in December 2007 with friends in order to cause the death of Jewish soldiers, the military continued.
The shooter reportedly turned the gun on himself after wounding two classmates.
Bluth said that from an initial probe, dozens of extremist Jewish-Israelis with facemasks attacked Funduk by perpetrating arson against Palestinian property in the village.
According to the reports, police forces were present on site.
The Canadian government announced a national antisemitism forum after the shooting of the Toronto Bais Chaya Mushka Elementary School and arson of the Montreal Beth Tikvah Synagogue.