"Aeid Jumaa, 35, was killed and six other Palestinians were wounded during clashes along the Gaza border (with Israel) north of Jabalia," ministry spokesman Ashraf al-Qudra said.
An Israeli army spokeswoman, contacted by AFP, said hundreds of Palestinian demonstrators had burned tyres and been throwing stones the length of the security fence between Israel and Gaza.
"Our forces had to arrest suspects to prevent damage to the security fence," she said, but was unable to confirm the casualties from gunfire.
Israeli authorities say most of the Palestinians killed were carrying out knife, gun or car-ramming attacks.
However, others were shot dead during protests or clashes, while some were killed in Israeli air strikes on Gaza.
The violence has subsided in recent months.