Most of those arrested, an exact number wasn't given, were taken into custody in from the Palestinian village of Beit Laqiya in the Ramallah area of the West Bank and were associated with Hamas and Islamic Jihad, The Jerusalem Post reported.
They were arrested several hours after the Wednesday bombing, The New York Times reported.
A statement Thursday from Shin Bet, the Israeli security service, said the suspects admitted to preparing the bomb and buying cellphones for the remote detonation of the device.
The statement also said the suspects recruited an Israeli citizen who previously lived in the West Bank and was allowed to settle in Tayibe under the family reunification law to help carry out the bombing, Ynetnews reported.
The Shin Bet said the attack was apparently carried out in response the Israeli military's Operation Pillar of Defense in Gaza.