They named him as Ali Mahmud Safi, 20, and said he was hit in the chest in a clash with soldiers near the camp, north of Ramallah.
An army spokeswoman told AFP he was one of about 50 Palestinians who hurled rocks at soldiers, who initially "responded with riot dispersal means" then opened small calibre live fire when the rioters refused to disperse.
"Upon their refusal to vacate the area and refrain from further violence the forces fired a .22 calibre round toward a main instigator and a hit was confirmed," she said in English.