The man, who was wanted and whose name was not given, opened fire at soldiers who came to arrest him at his home, where two weapons were later found, an army spokeswoman said.
Two Palestinians were wounded by gunfire in subsequent clashes with Israeli troops, Palestinian hospital sources said.
Since a wave of violence broke out in October 2015, 254 Palestinians, 40 Israelis, two Americans, one Jordanian, one Eritrean and one Sudanese have been killed, according to an AFP count.
The Israeli army routinely carries out forays and arrests in Ramallah although it is in principle entirely under the control of the Palestinian Authority.
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