Israeli officials alleged that Tariq Abu Surur was shot as he approached the Kadim colony on Thursday morning.
However, Aljazeera's correspondent reports that Surur was killed in the Sharqi quarter of Jenin during an exchange of fire with an Israeli special forces unit.
Occupation forces had been searching for the 20-year-old for some time because they believe he had taken part in attacks on other colonies.
Aljazeera also reported that a bomb has exploded in the Gaza Strip on Thursday morning.
The device destroyed the entrance to the senior Palestinian police commander's home in Gaza city.
But Major General Ghazi al-Jabali was not injured in the attack and there has been no official statement as to who may have planted the device.