A man with gunshot wounds was found dead in a car in the northern Arab Israeli town of Arraba on Sunday, police said.
Police opened an investigation into the incident and said in a statement that it was too early to specify what the motive for the shooting was.
Paramedics found the victim, 29, and a resident of the city, with no vital signs and declared him dead at the scene.
He was identified in Hebrew media reports as Bahar Asala.
Police set up checkpoints in the city as they tried to apprehend the perpetrator.
According to the Aman Center which campaigns against violence in the Arab community, 26 people have been killed in the Arab community since the start of the year. So far, just five of the cases have been solved.
Arab Israelis blame the police, who they say have failed to crack down on powerful criminal organizations and largely ignore the violence, which includes family feuds, mafia turf wars and violence against women.
Prime Minister Naftali Bennett and Public Security Minister Omer Barlev have vowed to crack down on the violence, as well as on illegal weapons.