The arrest, which took place in the village of Beit Omar near the scene of the murder, was cleared for publication Monday afternoon.
Intelligence information attained by the defense establishment indicated that the murder was carried out by two terrorists who were hiding in a building in the village of Beit Omar, not far from where the stabbing took place.
The two suspects were identified as Khader Abu Daya and Moussa Khalil.
Following up on the lead, security forces raided the building and found the suspects. They were arrested and transferred to Shin Bet custody for interrogation.
According to defense establishment estimates, no official Palestinian organization was behind the attack, which was initiated by the two suspects.
In their interrogation, the two confessed to carrying out the murder, which they said was planned earlier, including patrols of the area. On the day of the attack, the two left their village in possession of knives, and after spotting Levanon they ambushed him and stabbed him to death for nationalistic motives.
'An exemplary family man'
Levanon, a 42 year-old father of three, was stabbed to death not far from his vehicle. Palestinians reported finding the body, between Bat Ayin and Beir Omar, to the Palestinian security authorities. Security searches after suspects focused on Beit Omar and Hirbat Sapa near the wadi.
Levanon's funeral procession left the Bat Ayin synagogue on Minday afternoon, and he was laid to rest at the Kfar Etzion cemetery.
Levanon kept a routine schedule of Torah studies, and spent one hour each day at a secluded location communing with God. His friend, Rabbi Michi Yossefi, said that Levanon was apparently murdered while praying at his usual spot.
"Erez was an exemplary family man, who managed to reach a wonderful balance between his work and his home… he wasn't someone who stood out but a very modest man," Yossefi described.