The two officials are Adnan Gheith, who holds the largely ceremonial post of Palestinian-appointed governor of Jerusalem, and Jihad Al-Faqeeh, the Jerusalem director of the Palestinian Authority General Intelligence Services.

They were arrested on suspicion that they helped abduct a Palestinian resident of Jerusalem two weeks ago, their lawyers said.

According to a report on Israel's Reshet 13 television, the Palestinian has both an Israeli identity card and U.S. citizenship. He is reportedly being held in the West Bank.

He was wanted by the Palestinian Authority for helping to sell property in Jerusalem's Old City to Jewish buyers, the report said.

In the past, Palestinians have imposed the death penalty on individuals convicted of selling land to Jews, though PA President Mahmoud Abbas has not authorized executions since his election in 2004.

Gheith's lawyer, Mohammed Mahmoud, said his client was ordered to keep out of Jerusalem and to pay a 20,000 shekel ($5,500) fine, and was also placed under house arrest for seven days.

The official Palestinian news agency, WAFA, said Abbas had spoken by phone to both men following their release.

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The two men currently in Israeli custody are Adnan Gheith, who holds the largely ceremonial post of Palestinian-appointed governor of Jerusalem, and Jihad Al-Faqeeh, the Jerusalem director of the PA General Intelligence Services.

They are suspected of having assisted in abducting a resident of Jerusalem two weeks ago, who has been held by the PA in the West Bank since, their lawyers said. Both men deny the charges.

The Israel Police said only that the two have been remanded until Tuesday.

Police spokesman Micky Rosenfeld said, "Two people were arrested and the investigation is ongoing."

Israel seldom arrests high-ranking PA officials.

The PA condemned what it described as the "abduction" of the two officials, but it did not comment on the charges.

Senior Palestinian official Saeb Erekat called for the immediate release of the two men.

According to a report on Israel's Reshet 13 television station, the Jerusalem resident abducted two weeks ago is an American citizen, in addition to having an Israeli identity card.

According to the report, he was wanted by the PA for helping to sell property in Jerusalem's Old City to Jewish buyers.

The Palestinians often impose the death penalty on individuals convicted of selling land to Jews, though Palestinian Authority President Mahmoud Abbas has not authorized executions since his election in 2004.

Asked about the report, a U.S. Embassy spokesperson said: "We are aware of reports that a U.S. citizen has been detained by the Palestinian Authority. When a U.S. citizen is incarcerated or detained overseas, the State Department works to provide all appropriate consular assistance."

The spokesperson declined to elaborate on privacy grounds.

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