The obstruction found on railway tracks in the north, could have caused major casualties, had it not been removed, a source told Ynet late on Monday.
Security forces removed what they described as an 'object' placed on the railway lines between Acre and Karmiel in the western Galilee and arrested a resident of the area in his 20s who was being questioned by the Shin Bet.
"There is no doubt a major incident was averted," the source said. "A train traveling between 120 and 140 kilometer per hour (74 and 87 miles per hour) and collides with an obstruction, can be derailed and its cars could be turned over because the driver would have no time or place to slow down," he said.
A gag order was placed on all aspects of the investigation as security officials continue their investigation.
Tensions remain high all over the country and on Tuesday, Police Commissioner Kobi Shabtai toured the Temple Mount compound, where protesters clashed with forces.
On Monday, the police arrested at least 14 residents of East Jerusalem and on Tuesday thus far, at least two, were detained.
Violent clashes also took place late on Monday, in east Jerusalem neighborhoods with stones and firebombs hurled at police force.