The car blew up near a petrol station close to the settlement, it said.
Police spokesman Micky Rosenfeld said a car carrying what appeared to be a suicide bomber blew up at a junction near the settlement.
''The car went up in flames and it looks like a terrorist attack,'' he said.
Rosenfeld said one person who appeared to be the bomber was injured but could not confirm if the apparent bomber was killed.
He added there were no other casualties.
REUTERS SK RN0219