The suspect went around Hadera this morning and attacked indiscriminately, with many of the injured reportedly in critical condition.
The helmeted suspect was arrested by police while fleeing on a motorcycle.
Hadera local authorities have closed schools and kindergartens and stepped up police patrols.
Local media reported that the suspect is in his 30s of Israeli nationality and is from a predominantly Arab region.
Police have defined the attack as "terrorism" and are investigating the suspect.
The Israeli military has stepped up its alert posture, judging that there is a high possibility of terrorist attacks on the first anniversary of the outbreak of the Gaza War.
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