Ms Luken's body was recovered after her friend raised the alarm Police in Israel have arrested two Palestinian men who they say have confessed to killing US woman Kristine Luken late last year.
Ms Luken, 44, was stabbed to death while hiking with a British friend in a forest outside Jerusalem.
Officials said the suspects belonged to a crime gang also linked to the killing of an Israeli woman in the same area.
Police said the gang had targeted Israelis to avenge the assassination of a Hamas official in Dubai.
The killing of Mahmoud al-Mabhouh last year was widely blamed on Israel's intelligence agency, Mossad.
According to the indictment, the men believed Ms Luken - a Christian missionary - and her friend Kaye Susan Wilson were both Israelis.
Ms Wilson was also stabbed several times but made a remarkable escape. She feigned death and rolled down an embankment, her hands still bound together, before raising the alarm.
Friends attended a memorial service for Ms Luken in Jerusalem The two arrested men, along with a third person accused of the murder of an Israeli woman in early 2010, appeared in a Jerusalem court in orange jumpsuits and shackles.
The indictment said the men had confessed and had re-enacted both killings.
Police said another 10 suspects linked to the same criminal gang and involved in lesser crimes were also in custody.
Ms Wilson had told police how she and Ms Luken were attacked by two Arab men armed with bread knives while walking in the Mata forest, near the town of Beit Shemesh.
The forest is located inside Israel but close to the West Bank.
Ms Luken was a member of a US and UK-based missionary group called the Church's Ministry among Jewish people.
This article is from the BBC News website. � British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.
Source: http://www.bbc.co.uk/go/rss/int/news/-/news/world-us-canada-12292913
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