Israel's military and internal intelligence service Shin Bet said it had carried out the arrest "in one of the most daring operations" and that it took place near the man's home in Gaza.
A statement on the arrest was released by Netanyahu's office. The detainee, who has been named, has been brought to Israel. In connection with the arrest, a number of Israeli operations were carried out in the western part of Gaza City.
Three people were killed in the Israeli raids, two children and a woman who was said to be the detainee's wife, according to witnesses.
Hamas condemned the Israeli raids as "criminal" and contacted US-appointed envoy Nickolay Mladenov to complain.
