"An assailant armed with a knife stabbed two IDF (Israel Defence Forces) soldiers during routine activity near Al-Arroub," an army statement said, referring to an area south of Bethlehem in the southern West Bank.
"Forces shot and detained the assailant," it added.
An army spokeswoman said the two soldiers' wounds were not life threatening.
The Palestinian Health Ministry identified the man shot as Mustafa Baradeah from Al-Arroub refugee camp.
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Al-Arroub is located about halfway between Bethlehem and the flashpoint West Bank city of Hebron, where many of the attackers in a recent wave of violence have come from.
Violence in Israel and the Palestinian territories since October last year has killed at least 215 Palestinians, 34 Israelis, two Americans, an Eritrean and a Sudanese.
Most of the Palestinians killed were carrying out knife, gun or car-ramming attacks, according to Israeli authorities.