Husam Abu Zarka, 18, died of his injuries on Saturday after being wounded in Wednesday's clashes with Israeli occupation troops.
Abu Zarka was fatally wounded when Israeli soldiers opened fire on a group of stone-throwing youths and died soon afterwards.
His death brings the number of Palestinian youths killed in the Israeli raid on the Palestinian refugee camp of Dair al-Balah up to five.
Muhammad Abu Barka, 18, Ahmad Abu Shawish, 19, Muhammad Abu Musabih, 15, and Muhammad Jamal Barakeh, 19, were all reportedly killed in similar circumstances.
An Israeli army spokesperson told Aljazeera.net the deaths were "still under investigation".
He said the raid began after a 10 metre deep by 400 metre long tunnel was discovered under the settlement on Wednesday morning.
Aljazeera's correspondent in Palestine reported Israeli forces ravaged large areas of farmland east of Jabalya in the Gaza Strip on Saturday.
Israeli forces stormed the area amid fierce gunfire targeting citizens' houses, the correspondent said.
Saturday's attacks were preceded by missile raids on Friday. Eyewitnesses told Aljazeera three missiles were fired at a metal workshop in al-Maghazi refugee camp. There were no reports of casualties.
The Israeli army admitted the attack, saying the building was owned by a member of Hamas and housed an arms factory.
The number of Palestinians who have been killed since the beginning of the al-Aqsa Intifada is now more than 3200, with many thousands more suffering serious debilitating injuries.
About 927 Israelis have also been killed in the same period.