A Palestinian man died overnight on Monday in the village of Kharsa near West Bank city of Hebron, Palestinian officials said.
The Israeli army allegedly said that "the man was killed as a bomb blew up when he was attempting to throw it on Israeli forces."
Palestinian medical officials said that the 23-year-old man was shot in the head, but Israeli officials have denied shooting him.
The Palestinian Islamic Jihad group said that the man killed, Diyaa Abdul Halim Talahmeh, is one of its members, and the organisation affirmed that the man had been shot dead by Israeli troops.
Tensions have escaladed on the eve of the Jewish fasting day, as Yom Kippur is coming to a close and the Muslim holiday Eid al Adha is coming up.
Israeli forces tightened security measures on Tuesday in Jerusalem and the West Bank. They limited movement between the West Bank, Gaza and Israel until Wednesday.
In the same area, just hours after the 23-year-old man was killed, Israeli troops shot and injured a Palestinian woman.
A resident of Hebron identified the woman as 19-year-old Hadeel Salah al-Hashlamon, according to Al Jazeera.
According to Israeli officials, the al-Hashlamon was shot as she was attempting to stab an Israeli soldier, the soldier is doing well however, the health condition of al-Hashlamon - reportedly taken to an Israeli hospital - is unclear.
Since the Israeli-Palestinian peace talks broke down in 2014, clashes have been erupting between Palestinians and Israeli forces.
Recently, extreme Jewish groups have been calling for the destruction of the Al Aqsa Mosque to build a new Jewish temple in its place, which resulted in increasing tensions. Last week, clashes erupted in the Al Aqsa Mosque and lasted for three days between Israeli forces and Palestinians.
The Al Aqsa compound has been a source of religious and political tension for decades between Israel and Palestine, as well as a frequent flash point for violence. Similar clashes took place at the end of July.
Israel has deployed thousands of police officers in Jerusalem recently. Since the beginning of 2015, at least 24 Palestinians have been killed by Israeli forces according to UN figures.