Mamun al-Zarini, 24, a resistance fighter with al-Aqsa Martyrs' Brigades, was killed on Thursday, according to Palestinian security services and medics
He died during a major gunfight which broke out in the early hours of the morning when around 30 Israeli jeeps and tanks moved into the city and arrested five people.
His death brings the toll since the September 2000 start of the Al-Aqsa Intifada to 4103, the majority of them Palestinians.
Previous day fighting
On Wednesday a Palestinian man was killed by Israeli occupation soldiers during the new crackdown which began on Saturday.
Up to 20 military vehicles were used in the operation, during which eight Palestinians were detained including Ayyub Khamaysa, a leader of the Islamic Jihad resistance movement, Aljazeera's correspondent reported on Wednesday.
Hasan Ayash, 38, was killed after Israeli occupation forces fired stun grenades at his home.
Troops faced fierce resistance from Palestinian fighters during the invasion, which started on Saturday.
Israeli occupation forces also detained 10 other Palestinians in other parts of the West Bank.
In the Gaza Strip Israeli military helicopters fired three missiles at a metal workshop overnight in Gaza City, wounding two people.
Witnesses said the target was a workshop alongside a Hamas office at the entrance to the Shati refugee camp on the Gaza City beach.
The two wounded were passing by when the missiles struck, setting the building ablaze.
The Israeli military said the target was "a factory used by Hamas to house arms and ammunition that Hamas used to attack Israeli soldiers and civilians".
Two bystanders were wounded
in the attack
In the past, the Israeli occupation army has targeted many such workshops in Gaza, saying that Palestinians use them to make weapons, including primitive rockets and mortars.
Residents, however, said the first floor of the building was a repair shop for generators and motorcycles, and the second, once used by Hamas, was empty.
Locals added that there were petrol tanks inside, which apparently contributed to the size of the blaze.
The air strike came a few minutes before midnight local time.
One of the missiles fired at the building failed to explode.
Earlier on Tuesday, Palestinians fired a rocket from Gaza at the nearby Israeli city of Sderot. Two vehicles were damaged.