The man was shot in the head during a protest near the village of Beit Dajan, near Nablus, and was taken to a hospital where he later died.
Israeli troops have shot and killed a Palestinian protester during clashes in the occupied West Bank.
Clashes erupted between Palestinian protesters and Israeli soldiers in the town of Beit Dajan in the eastern Nablus province after the forces fired live and rubber bullets as well as tear gas canisters.
The Palestinian health ministry said the man died after being shot in the head during the protests.
He was killed in a clash between Israeli soldiers and Palestinians demonstrating against Israeli settlement activity, said Beit Dajan mayor Abdelrahman Hanani.
"The soldiers fired when we approached a wildcat settlement near the village," he told AFP, using a term for settlements not recognised by the Israeli government.
Before he died, the man – identified as Atef Hanaysheh, 48 – had been hospitalised in "serious" condition after being hit in the face, Anadolu Agency learned.
Meanwhile, dozens of Palestinians hit by tear gas were treated in the field, medics told Anadolu Agency.
The Israeli military said dozens of Palestinians hurled rocks at the soldiers, who responded with “riot dispersal means” and by firing into the air. It said it was looking into the reports of the death but that the cause of the injury was still unknown.
Weekly protests against Israeli settlements
Palestinians usually stage weekly protests in the occupied West Bank against illegal Israeli settlements.
The West Bank, including East Jerusalem, is regarded as occupied territory under international law, making all Jewish settlements there illegal.
The UN envoy for the Mideast peace process, Tor Wennesland, extended condolences to the family of the deceased and called for an investigation. “Lethal force is only a last resort under imminent threat of death or serious injury,” his office tweeted.