Hebron, the traditional burial site of Abraham, the shared patriarch of both Jews and Muslims, is the only place where Jews live in the heart of a West Bank city. Arab-Israeli violence there dates back decades, and clashes are frequent.
About 850 settlers now live in Hebron in heavily guarded enclaves among 180,000 Palestinians. Hundreds of Israeli soldiers enforce a rigid separation between the two sides.
The settlers seized the house in an overnight raid last Thursday, claiming they had purchased it from a Palestinian landowner. But the military subsequently ordered them to leave the building because they had not received proper approval to live there.
After Netanyahu's call for a legal review of the matter on Tuesday, it appeared the evictions would be on hold. But government officials said Netanyahu's attorney general determined the house should be cleared out immediately.
Hundreds of police ringed the apartment building around midday on Wednesday. Settler leaders said about 70 people moved into the building last week. But only 15 or so, including children, were inside when the raid was launched, police spokesman Micky Rosenfeld said.
He said an eviction order was ripped up by one of the people inside, but otherwise there was no resistance.
Defense Minister Ehud Barak, who oversees the military occupation of the West Bank, pledged to "continue to act to uphold the law and democracy while safeguarding the state's authority over its citizens."
Authorities were still investigating whether the house was legally purchased as the settlers claim, Barak said.
Barak heads a small, centrist faction in a government coalition that is otherwise dominated by hard-line parties sympathetic to Jewish settlers, who are intent on cementing Israel's control over the West Bank.
Foreign Minister Avigdor Lieberman, who heads the nationalist Yisrael Beitenu party, said the settler eviction "shakes the stability of the coalition."
After Wednesday's raid, one of the most militant settler leaders, Baruch Marzel, warned of retaliatory attacks.
"No one wants more violence," Marzel said, but added that "when the racist government that doesn't let the Jews buy a house in the land of Israel. . . . I think violence is a reaction to the racist government."
The raid came shortly after Netanyahu announced new moves to try to save unauthorized settler construction in the West Bank from demolition.
On Tuesday, Israel announced it was pushing forward with an earlier plan to build hundreds of new homes in a Jewish neighborhood in East Jerusalem.