Palestinian security sources and medics said another man accompanying him was arrested by the Israeli army.
They identified the slain Palestinian as Muhammad Awad, 26, who they said was active in the resistance group's military branch, the Jerusalem Battalions.
Meanwhile in Gaza, a 16-year-old, who was seriously wounded during a 20 October Israeli air raid on the Nusseirat refugee camp, succumbed to his injuries, medics said.
The teenager was identified as Salah Abdelghafar and his death brought the Nusseirat strike toll to 12.
Since the September 2000 launch of the Intifada, 2674 Palestinians and 849 Israelis have been killed, according to an AFP count.