The al-Aqsa Martyrs Brigades said the German was handed to police

It was not clear whether the abduction was linked to the row over publication of cartoons of the Prophet Muhammad in Western newspapers.

Militants in Gaza had earlier threatened to kidnap Westerners.

Palestinian gunmen also briefly surrounded EU offices in Gaza to demand an apology over the cartoons.

Protests

The German seized by the hostage-takers was named only as Christoph.

He is with us - he is safe, he is fine Palestinian security official

A hotel worker in Nablus told AFP news agency the kidnapped man had been sitting with a group of Palestinians when gunmen entered and took him away without a struggle.

The al-Aqsa Martyrs Brigades militant group said he was later handed over to police.

However, security officials told the AP news agency that police had found four kidnappers and the German.

Police arrested two kidnappers and freed the German, the officials said.

The incident comes amid protests in many Muslim countries and communities over the publication of the cartoons of the Prophet in European newspapers.