Israeli police say a mosque has been defaced with Hebrew graffiti and three cars have been torched in a Palestinian village in the West Bank.

Police spokesman Micky Rosenfeld said Wednesday that vandals painted "price tag" and "Gal Arye Yosef" overnight on a wall of the mosque in the village of Dir Istiyya.

"Price tag" refers to a practice by Jewish extremists of accosting Palestinian property - and more recently, Israeli military bases - in retaliation for Israeli government action against settlers.

Gal Arye Yosef is the name of a small, unauthorized settlement outpost that Israeli security forces demolished on Tuesday.