The victim was fatally shot by the forces in the village of Kifl Haris near the city of Salfit in the occupied territory on Thursday, Xinhua reported, citing the Palestinian Authority (PA)’s Health Ministry.
He later died from a deep wound in his neck, the Ministry added.
The incident took place after clashes broke out in the village between the military and Palestinian youths, the agency said, citing sources from the village.
"The Israeli occupier is fully responsible for the killing of the Palestinian young man in Salfit with no reason and with no justification," said PA Prime Minister Mohammed Ishtaye.
Provincial governor Abdullah Kamil named the victim as Ibrahim Moustapha Abou Yacoub, 29, AFP said.
The Israeli military, however, gave another account, claiming "two assailants were throwing Molotov cocktails” at the forces. "Troops responded with fire," it added.
Three other Palestinians were also reportedly wounded during the clashes.
Kifl Hares is located south of the city of Nablus. The incident came as the Israeli regime has announced its intention to annex some areas of the city as part of 30 percent of the West Bank that it plans to expropriate under a United States-backed pro-Tel Aviv scheme.