An Israeli court on Monday convicted a Jewish settler of premeditated murder of a racist motive in an attack in 2015 that killed a Palestinian couple and their child, who was burned in the occupied West Bank.

The settler Amiram bin Uliel killed three members of the Dawabsheh family - including Father Saad, Mother Reham and their infant Ali (18 months) - by throwing a Molotov cocktail inside their house in Duma village, south of Nablus, on July 30, 2015.

The Israeli Central Court convicted the settler, Bin Uliel, of three premeditated murders, and two other attempted murders and arson, and acquitted him of membership in a terrorist organization.

The Lod District Court ruling convicting Bin Uliel (25 years old) of killing the three carries a penalty that could reach life imprisonment.

The five-year case has highlighted what the Palestinians see as a slowdown in Israel's actions against Jewish militants, compared to a quick and sometimes deadly response by the security forces to similar actions by Arabs.

In a rare statement, the Israeli Internal Security Agency (Shin Bet) described the ruling as "an important event in combating Jewish terrorism."

Ahmed Dawabsheh, Ali's brother, survived the attack, but was seriously burned and cared for by his grandfather Hussein.

"I spent a year in the hospital ... I do not want any other family to suffer such a catastrophe ... enough," Hussein Dawabsheh told reporters in court.