No, that's not true. The Jews from that area are essentially the same people as the non-Jews from that area. They are the most closely related genetically to each other than to any other peoples in the world. The only real difference between the Jewish Palestinians (who now call themselves Israelis), and the Christian and Muslim (and secular) Palestinians, is that at some point in their families' history, some of them became Jews, some of them became Christians, and some of them became Muslims (and some became secular). But they all come from essentially the same genetic stock who have been in that area for thousands of years.

The European Jews in Israel, on the other hand, while their ancestors did live in that region centuries ago, they did live in other parts of the world for many centuries prior to returning to the Middle East. So while the indigenous Jewish Palestinians have an uninterrupted history in that region, the European Jews do not.