Israel’s new Defence Minister, Avigdor Lieberman, has promised that he would not “settle for lip service” in the security response to the Wednesday night’s shooting rampage in Tel Aviv which left four dead and 16 wounded.

The shooting, carried out by two Palestinians from Yatta in the West Bank, was the deadliest single attack since the upsurge in terror began in October.

During a visit to the site of the shooting, the Max Brenner chocolate restaurant in the popular Sarona Market in the city centre, Mr Lieberman said: “I've come to salute the Tel Avivians who are again undergoing an uneasy event and yet wishing to return to life and prove that life is stronger.

“I don’t plan on detailing the steps we'll be taking, but I certainly have no intentions of settling for lip service.”

The deputy defence minister, Eli Ben-Dahan, went further, saying: “Life in the Yatta village won't carry on as usual. A village that has terrorists leaving from its midst will pay the price.”

The two men and two women killed have been identified by Israeli Police spokesman Micky Rosenfeld as Ido ben Ari, 42, Dr Michael Feige, 58, Ilana Naveh, 39, and Mila Misheiv, 32.

The terrorists, two men, have been arrested and taken into custody. One is in hospital.

The attackers, dressed in suits and ties, sat down in the Max Brenner, ordered and finished their desserts before opening fire on terrified customers.

According to the Israeli Ministry of Foreign Affairs, the terrorists “pulled out machine guns and started shooting.

“The attackers were arrested by police who quickly arrived at the scene. One, who refused to give himself up, was shot and wounded by a security guard; he is currently hospitalised together with his wounded victims.”

The area was closed off and evacuated following the attacks, which have prompted the authorities to revoke entry permits for 83,000 Palestinians to visit Israel during Ramadan.

Prime Minister Benjamin Netanyahu visited the site of the attack today, meeting with the restaurant owners and receiving a briefing from the police.

David Cameron has responded to the killings, saying: “I am sickened by the appalling attack in Tel Aviv. We stand with Israel against terrorism and my thoughts are with the victims and families.”

Richard Verber, the Board of Deputies senior vice-president, has called the attacks “horrendous”.

Mr Verber added that it was “a telling contrast that while Israeli medical staff are working to save the life of one of the suspected terrorists, all the Palestinian Authority has to offer is incitement to those who would seek to kill and injure innocent civilians.”

The Movement for Reform Judaism posted its condolences on Twitter, writing: “We are appalled by the loss of innocent lives in Tel Aviv and condemn this senseless act of terrorism. May their memory be a blessing.”