Ahmad Betawi, the director of Ramallah Hospital, said 22-year-old Essa Qatri, was shot in the chest with live fire and died shortly before reaching the hospital.
Israeli forces entered the al-Amari refugee camp near Ramallah in the early morning hours to arrest a Hamas operative, the military said.
It said it encountered dozens of Palestinian protesters who burnt tires and threw stones at the troops. Witnesses in the camp gave a similar account of the incident.
While violence raged between Israel and Palestinian militants in Gaza this summer, the West Bank remained largely quiet. Still, some flare-ups occurred and a number of Palestinians were killed in separate incidents.