An Israeli army statement did not confirm the fatality, but said troops had fired at a suspect who threw "a suspicious object that exploded on the soldiers".
Israeli forces have killed a Palestinian man in the occupied West Bank, Palestinian officials said.
The Palestinian Health Ministry said Mohammad Fareed Hasan, who was in his 20s, was killed on Saturday in his village of Qusra near the city Nablus by Israeli gunfire, while two others were wounded.
"Hasan was standing on the rooftop of his home when he was shot dead," said a report on the official Wafa news agency.
According to Wafa, Palestinians in Qusra, were "fending off an attack by hardcore Israeli settlers on the village".
An Israeli army statement did not confirm the fatality, but said troops had fired at a suspect who threw "a suspicious object that exploded on the soldiers", amid a "violent confrontation" between Palestinians and Jewish settlers.
Israeli jets struck Hamas targets in Gaza where the Israelis said the Palestinian group produced weapons.
Sources in Hamas, who controls Gaza, confirmed that the two sites hit belonged to the group. One man was critically wounded, medics said.
Since a May 21 ceasefire ended 11 days of Israeli aggression in Palestinians, people in Gaza have been trying to rebuild the city which was destroyed by heavy strikes.
At least 250 Palestinians including dozens of children and women and hundreds of others injured, while 13 people in Israel were also killed.
READ MORE: Israeli air strikes target Gaza
Illegal settlers in West Bank
Jewish settlements in the West Bank, a Palestinian territory occupied by Israel since 1967, have proliferated in recent years.
Clashes between Palestinians and Israeli settlers and troops are common.
The Nablus area has seen heightened tension in recent days as Palestinians have held protests against the construction of an illegal Jewish outpost near the village of Beita.
The settlers evacuated the outpost, known as Eviatar, on Friday in accordance with an agreement they reached with Israel's new coalition government.
There was no immediate indication of a link between the Eviatar fracas and Saturday's unrest.
There are roughly 475,000 Jewish settlers in the West Bank, living alongside some 2.8 million Palestinians, in communities regarded as illegal by most of the international community.