Israel's intelligence service alleges that Hamas had planned an attack on the Israeli embassy in Stockholm, which was thwarted when Danish security police arrested several individuals in December.
The Israeli government claims that the Hamas leadership based in Lebanon was behind the terror plan.
However, Hamas has denied these allegations, stating that this is a scare tactic used by Israel.
The Israeli embassy and the Swedish Security Police have declined to comment on the matter.
The information comes after widespread arrests in Denmark and Germany in December, with several individuals suspected of planning terrorist attacks in the country.
These arrests allegedly revealed information about the intention to attack the Israeli embassy in Sweden.
However, Hamas states that it has never conducted operations outside Palestine.
The Swedish Security Police are aware of the information but have not made any specific comments.
Experts believe that the conflict will worsen before it gets better, creating a breeding ground for radicalisation and potential targets in Europe.
Critics stress the need to await comments from Swedish authorities on the issue.