Abd Allah al-Jammal, 35, was hit by an Israeli bullet when soldiers opened fire on a group of stone-throwers on Tuesday, witnesses told Aljazeera. Sources also said the man worked for the Palestinian National Security (PNS) service.
Fourteen other Palestinians were wounded in the incident, medical sources said.
Two Palestinian photographers working for Agence France Press (AFP) and Reuters were also wounded when Israeli troops opened fire.
Mahmud Hams, 25, was hit by a bullet in his left thigh and by shrapnel in his right leg, said Dr Ibrahim al-Musadar.
He, along with Suhaib Jad Allah were hit as photographers took pictures of young Palestinians throwing stones at Israeli troops conducting the raid.
At least eight houses and farmland were razed during the raid in three areas, Palestinian security sources said.
Seven houses were demolished in the Khan Yunus refugee camp and at least one in Deir al-Balah, witnesses said.
Mahmud Hams was hit in both legs
while photographing the clashes
Two Palestinians were killed in an Israeli missile strike on the refugee camp of Khan Yunus in the Gaza Strip on Tuesday.
At least 22 Palestinian homes were also bulldozed in the camp.
In Rafah in the southern area of the strip, army bulldozers were clearing land and rubble from previous house demolitions, Palestinian witnesses said. The army has been raiding the area in recent days saying it aims to uncover tunnels used to smuggle weapons across the border with Egypt.
In the West Bank city of Hebron, Aljazeera's correspondent reported that Israeli occupation troops randomly arrested and unknown number of Palestinians.
The correspondent also reported that armed clashes occurred overnight on Tuesday in the city of Jenin between Palestinian fighters and occupation forces.
This followed the infiltration into the Sharqi quarter of the city by Israeli military vehicles and tanks.
The latest death took to 3967 the number of people killed since the Palestinian uprising erupted in September 2000, including 2992 Palestinians and 905 Israelis, according to an AFP count.