Israeli soldiers have shot dead one Palestinian and wounded two others after opening fire on a car at a checkpoint in the occupied West Bank.

Palestinian medical and security sources said Akram Dair, 40, was driving in a car before dawn on Monday when border guards near Ramallah opened fire on him and the two other Palestinian passengers in the car.

The three Palestinians, said to be heading to Occupied Jerusalem for prayers, were taken to a hospital in Ramallah.

It was unclear why the Israelis fired at the car as it approached the checkpoint.

An Israeli army spokesman confirmed an "incident" had occurred on the road leading from the West Bank to Occupied Jerusalem, but could not provide further details, the AFP news agency reported.

West Bank Palestinians do not have the right to enter occupied territories, including East Jerusalem, without a permit from Israeli authorities.