An explosion has heavily damaged the Hebron office of Fatah, the party of Palestinian leader Yasser Arafat.
One body has been seen being pulled from beneath debris.
Neither the nature of the explosion nor the number of people inside the building are immediately clear.
Palestinians in the area - the centre of the Palestinian-controlled area of Hebron - are digging through debris in a search for trapped people.
The Israeli army spokesman's office say it is checking the report.
Hebron, where about 450 Jewish settlers live in a heavily guarded enclave among 130,000 Palestinians, is often a site of violence.
Gunfire exchanges between Palestinians and Israeli forces have been frequent during the 10-month Palestinian uprising.
Earlier, a 25-year-old Palestinian was seriously injured in a gunfire exchange in the city.