The mother of a Palestinian toddler who died of his wounds after being shot by Israeli soldiers last week has called for justice as she attended his funeral in the occupied West Bank.

Marching with dozens of mourners on Tuesday, Marwa al Tamimi held her toddler for the last time, his face fitting in her palms as she leaned in to kiss his forehead.

"I want justice for my son and for every person who shot at my husband and son to be held accountable," she said.

Mohammad, who his mother said was months shy of his third birthday, succumbed on Monday to a gunshot wound to the head inflicted by Israeli forces.

Haitham al Tamimi, the father, was shot in the shoulder.

Al Tamimi said that he had just buckled up his son in the car and they were driving to visit an uncle when the bullets struck.

"When I went to check on my son, I told (the soldiers) that my son was killed. They said 'stand back or we'll shoot,'" the mother, who was not in the car, told Reuters.

Rise in killing of Palestinian minors

In a statement following the incident, the Israeli military said soldiers responded with live fire to shots fired by assailants toward an illegal Jewish settlement, and two Palestinians, including a child, were wounded.

"The Israeli Army regrets harm to non-combatants and is committed to doing everything in its power to prevent such incidents," the statement said.

The child’s father, however, has denied the Israeli narrative, saying there was no exchange of fire in the area and accused Israeli forces of directly opening fire on his car.

According to the Palestinian office of Defense for Children International (DCIP), al Tamimi was one of 27 Palestinian minors killed as a result of Israeli military and illegal settler violence in the occupied West Bank and Gaza since January.

Three Israeli minors were killed in the same period, according to Israeli figures.

"Without accountability, Israel's crimes against our people/children will continue unabated," Palestinian Prime Minister Mohammad Shtayyeh wrote in a tweet on Tuesday.

The US Office for Palestinian Affairs urged Israel "to evaluate all use of deadly force that involves civilian casualties".

It echoed statements by the EU delegation to the Palestinians and the United Nations envoy for the Middle East peace process that called on Israel to hold accountable those responsible for al Tamimi's death.