Israeli Prime Minister Benjamin Netanyahu said Tuesday the home of a Palestinian teen accused of stabbing to death a Jewish woman in the occupied West Bank would be demolished as a deterrent.

"We are going to destroy the terrorist's house," Netanyahu said as he visited the Otniel settlement in the West Bank, where Sunday's fatal stabbing occurred, according to his office. 

Israeli forces have arrested a Palestinian teenager for the killing, which led to outrage among Israelis.

Israel regularly demolishes the homes of alleged attackers in what it describes as a deterrent. Rights groups say it amounts to collective punishment, with families forced to suffer for the acts of relatives.