The Palestinian health ministry named the man killed as Saed al Koni and the local militant group "The Lions Den" claimed he was one of their members.
Israeli soldiers have shot and killed a suspected Palestinian gunman during an arrest raid overnight in the occupied West Bank.
The army said on Sunday it spotted a group of armed men travelling in a car and on a motorcycle during the raid near the city of Nablus and opened fire.
The Palestinian health ministry named the man killed as Saed al Koni.
The Lions Den, a loose coalition of fighters, claimed Koni as one of their members, saying he was killed in a “clash with the occupation forces.”
Among the members of this group was teenager Ibrahim al Nabulsi, who was killed by Israeli forces in August.
Koni's death was the second in the Nablus area in the past two days.
On Saturday, a Palestinian teacher was killed by Israeli troops after what the army called an "attempted ramming attack", but which Palestinians said was a traffic accident.
Israeli forces have faced criticism over their frequent use of lethal force in response to perceived threats.
Dozens of Palestinians have been killed this year, making 2022 the deadliest year in the occupied territory since 2016.
Since March, Israel has launched hundreds of raids in the northern occupied West Bank, including Nablus and nearby Jenin, in pursuit of individuals it accuses of involvement in deadly attacks targeting Israelis.
The raids have sparked clashes that have killed dozens of Palestinians, including fighters.
Israel has occupied the West Bank since the Six Day War of 1967.