Israel has indicted three members of a Jewish extremist group for setting fire to a bi-lingual school in Jerusalem where Jews and Arabs study together.

Monday's indictment accuses Yitzhak Gabai of Jerusalem and Shlomo and Nachman Twito, both of the ultra-orthodox West Bank settlement Beitar Ilit, of setting fire to the school late last month and writing racist slogans on its walls.

Prosecutors say the three are members of "Lehava," a group opposed to Jewish assimilation and co-existence between Jews and Arabs.

Mosques, churches, dovish Israeli groups and even Israeli military bases have been targeted by vandals in recent years. The acts have been condemned by Israeli leaders across the political spectrum.

The attack on the school came amid rising tensions in Jerusalem, mostly over a disputed holy site.