Intelligence indicated the terrorist was headed to an entertainment establishment in Tel Aviv. Friday night is customarily the most popular time for clubbing and entertainment in Tel Aviv, Israel's largest city.
Earlier, roadblocks were set up at the entrance to the city, causing traffic jams throughout the Dan region.
The operations included hundreds of officers from the Tel Aviv and Central Regions.
Hospitals were placed on alert in the Dan area, but the alert was removed when the general terror alert was lowered.