Silwad, Palestine - The US State Department on Sunday confirmed an American citizen had died this week in the West Bank, with family and Palestinian officials attributing his death to arson by Israeli settlers.

The Palestinian Authority and witnesses reported on Thursday that Israeli settlers had set fire to homes and cars in the West Bank village of Silwad, the latest attack in the occupied territory.

Khamis Ayyad (41) died from smoke inhalation due to the fires, the Palestinian health ministry said.

Speaking Friday at a press conference in Chicago, Ayyad's family said he had moved to the West Bank several years ago with his wife and children, but continued to work for an American company.

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He is at least the second American citizen killed in West Bank settler violence in July, after a 20-year-old man was beaten to death while visiting family in the town of Sinjil.

Mike Huckabee, the US ambassador to Israel, demanded Israel investigate that killing, calling it a "criminal and terrorist act," but has yet to comment on the death of Ayyad.

Contacted by AFP, the Israeli military said "several suspects... set fire to property and vehicles in the Silwad area," but said forces dispatched to the scene were unable to identify them. It added that Israeli police had launched an investigation.

Asked for comment on the latest death, a State Department spokesperson said "we can confirm the death of a US citizen in the town of Silwad in the West Bank," without naming Ayyad.

"We condemn criminal violence by any party in the West Bank," the spokesperson said, on condition of anonymity.

The West Bank is home to some three million Palestinians, who live alongside about 500,000 Israeli settlers. The Israeli settlements are considered illegal under international law.