Ziyad Daihya, 41, was taken prisoners after the Israeli soldiers broke into his home after invading the town of Al-Biereh near the West Bank city of Ramallah.
Eyewitnesses reported that troops stormed the house and forced the family in one room, before taking Daihya to an unknown location.
Daihya is an engineer and a council member of the Al-Bireh Municipality.
He is also the CEO of the Holy Land Company For Medical Equipment.
Daihya is the second council member to be arrested in Al-Bireh since the army arrested Mayor Jamal Al-Tawila four years ago.