The incident took place on Wednesday close to the illegal Israeli settlement of Ariel south of Nablus.
An Israeli army statement said the regime's forces had been chasing a group of rock throwers in a car, but one of the Palestinians took off the vehicle and stabbed an Israeli soldier.
The Israeli trooper “fired towards the perpetrator, resulting in his death,” the statement added.
The Israeli media reported that the soldier was taken to hospital for treatment of light wounds.
The identity of the slain Palestinian has not been revealed yet, Press TV reported.
Israeli police and soldiers have come under heavy criticism for “extrajudicial executions” of Palestinian citizens, who did not pose a threat or who could have been detained through non-lethal means.
The occupied territories have been the scene of heightened tensions since August 2015, when the Tel Aviv regime imposed restrictions on the entry of Palestinian worshipers into the al-Aqsa Mosque compound in East Jerusalem al-Quds in an alleged bid to change the status quo of the Muslim site.
More than 230 Palestinians, including children and women, have lost their lives at the hands of Israeli forces in what is regarded as the third Palestinian Intifada (uprising) since the beginning of last October.