According to local media reports, a Palestinian in a large truck drove into a group of soldiers and Israeli settlers at a checkpoint close to Ramallah, leaving an Israeli soldier dead.
Israeli forces arrived at the scene shortly after the reported ramming, opening fire at the driver.
According to Israeli media, the Palestinian driver, who is believed to be 41-years-old, is from the town of Deir Ammar, close to Ramallah, and had a permit to work in Israel.
Israeli forces confirmed that the driver was “neutralised” following the incident.
Around six soldiers were wounded in the ramming, and were taken to nearby hospitals. One is described as being in serious condition, while the others were lightly wounded.
Israel’s minister of finance, Bezalel Smotrich, arrived at the scene of the incident and warned Palestinians over the attack.
“We will crush terrorism and restore security,” he said. “Every day we bury Israelis. We must change this fate,” he added.
Smotrich also stated “we will defeat terrorism” after being asked how the government intended to respond.
Israeli troops have been deployed to the scene, while Israeli Prime Minister Benjamin Netanyahu has received updates on the ramming.
The attack comes after a 14-year-old Palestinian was shot dead by Israeli forces in occupied east Jerusalem on Wednesday evening.
The teenager was shot near Damascus Gate and died at the scene before emergency services could assist him.
Israeli police alleged that the teenager had attempted to carry out a stabbing attack at the nearby Shabati Yisrael railway station and that they had “neutralised him immediately with large amounts of police forces heading to the scene”.
Reports in Palestinian media state that shortly after the killing of the teenager, his home was stormed by Israeli forces, while Palestinian vehicles in the neighbourhood were also attacked by Israeli settlers.