Palestinian officials identified the man as Mujahid Hamed, 32, a resident of the nearby village of Silwad.
More than 140 Palestinians have been killed in Israeli-Palestinian fighting in the West Bank and east Jerusalem this year, making it the deadliest year since 2006.
The Israeli army says most of the Palestinians killed have been militants. But stone-throwing youths protesting Israeli army incursions and others not involved in confrontations have also been killed.
Israel has been conducting daily arrest raids throughout the West Bank, in an operation prompted by a spate of Palestinian attacks against Israelis in the spring that killed 19 people.
The military says the raids are meant to dismantle militant networks and thwart future attacks, but the Palestinians say they entrench Israel’s open-ended occupation, now in its 56th year.
At least 31 people have died in Arab attacks in Israel and the occupied West Bank this year, according to Israeli figures.