Israeli troops shot dead a 22-year-old Palestinian early on Thursday during a raid near the northern West Bank city of Jenin, Palestinian medics and security officials said.
Ahmad Tazazaa was shot dead in Qabatya after Israeli soldiers entered the town to carry out an arrest operation, Palestinian officials said.
Residents threw stones at them, prompting the soldiers to open fire, hitting Tazazaa in the chest, medical sources said.
The Israeli military said four people were arrested in the town, and could only say it was investigating reports someone had been killed.
"During an operation overnight to arrest four Palestinian suspects, some 50 Palestinians threw stones at Israeli soldiers, who responded using anti-riot methods," an army spokeswoman told AFP.
"We are looking into reports that a Palestinian was hit during the operation."
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Meanwhile, hundreds of people attended Tazazaa's funeral in Jenin, accompanying the body from the morgue back to Qabatya where he was buried, an AFP correspondent said.
Residents said Tazazaa was a member of the radical Islamic Jihad movement, but there was no immediate official confirmation.
The Palestinian Centre for Human Rights slammed the shooting, saying it "further proves the use of excessive force by Israeli forces against Palestinian civilians in disregard for the civilians' lives."
The non-governmental group called upon the "international community to take immediate and effective actions to put an end to such crimes."
It gave the names of the men arrested during the operation -- Rasem Khzaymiya, Momen Sabaana, Ayman Abu al-Rab and Emad Kmayl -- and said Tazazaa had been among stone-throwing protesters whom Israeli soldiers opened fire on during their exit with the prisoners.
On September 17, Israeli troops shot dead an Islamic Jihad member in Jenin refugee camp, about a month after killing another suspected member of the group in the city.