The Palestinian was identified by local media as 42-year-old Moammar Arif Refa'ey al-Atrash from Hebron, Al-Jazeera reported.
The Palestinian health ministry said the Israeli military had informed the Palestinian District Coordinating Office of the killing, without formally identifying the victim.
Palestinians living in the area reported hearing shots and then seeing a Palestinian man motionless on the ground surrounded by soldiers before he was taken away in an Israeli ambulance.
The Israeli army said in a statement that it had killed the Palestinian after he allegedly tried to stab an Israeli soldier.
A series of deadly incidents have increased tensions in the West Bank this month.
On October 15, a Palestinian was shot dead after allegedly stabbing an Israeli soldier in the northern West Bank, while a few days earlier, Aisha Al-Rawbi, a 47-year-old Palestinian mother of eight was killed after Israeli settlers threw stones at the car she was traveling in.