The Palestinian Ministry of Health said that Qusai Radwan Waked was hit by Israeli gunfire during the raid. He was shot in the belly and taken to hospital where he was pronounced dead.
Two other Palestinians were also injured, medical sources told Reuters.
An Israeli army spokesperson stated they had sent their forces to detain a suspected militant, when they came under fire and shot back.
“We are aware of the report that a number of gunmen were wounded in the exchange of fire,” the spokesperson added.
The Israeli army has been criticised by rights groups for its “shoot-to-kill” policy used against Palestinians even when victims posed no danger to soldiers.
The West Bank has seen a spike in violence since Israel intensified raids last year.
Israeli forces killed at least 167 Palestinians in the West Bank and East Jerusalem in 2022, the highest death toll in the region in a single calendar year since the Second Intifada.
In December, UN experts condemned Israel for the record violence and warned that 2023 could witness a higher number of casualties.
“Unless Israeli forces abandon this dominant settler mindset and rightfully treat Palestinians in the occupied territory as protected persons, Israel’s deplorable record in the occupied West Bank will likely deteriorate further in 2023,” they stressed.
More than 40 Palestinians have already been killed by Israeli fire this year, a rate of roughly one death per day.