The army spokeswoman said only "humanitarian cases" would be let in and out of Nahalin, southwest of Bethlehem and a short distance from the settlement of Neve Daniel.
A Jewish man in his twenties had appeared at the entrance to the settlement after having been stabbed while out jogging.
He was taken to hospital in moderate condition, with stab wounds in the upper body, medics said.
The army said forces were searching the area, but could not immediately determine the nature of the attack.
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The incident bore the hallmarks of Palestinian attacks over the past four months targeting Israeli security and civilians in the West Bank, east Jerusalem and Israel, primarily stabbings but also shootings and car-rammings.
The wave of violence that erupted in October has claimed the lives of 165 Palestinians, 26 Israelis, a US national, an Eritrean and a Sudanese.
Most of the Palestinians were killed carrying out attacks, while others died during clashes and demonstrations.
Neve Daniel is part of the Etzion bloc of settlements, a focal point of the unrest.
Earlier Tuesday, a 13-year-old Palestinian girl was arrested at the entrance to the bloc's Karmei Tzur settlement, after a knife was found on her, the army said.
And at the Damascus Gate entrance to Jerusalem's Old City, a 16-year-old Palestinian girl was arrested after attempting to stab police officers and then fleeing. Nobody was injured.