The man, whose name has not been released, was taken to Soroka Hospital in southern Israel, though his situation is not believed to be critical, according to the Israeli military.
Settlers who have moved illegally onto Palestinian land are frequent targets for Palestinian resistance forces.
Fighting has escalated markedly in the last week, with two separate Israeli attacks in Gaza on Saturday resulting in three deaths.
The latest Palestinian victim was an eight-year-old Palestinian girl, security sources and medics said.
Aya Fayad was killed when an Israeli tank shell pierced her chest. About 1500 people turned out for the girl’s funeral Sunday.
The latest Palestinian victim was an eight-year-old Palestinian girl, killed when an Israeli tank pierced her chest.
She had been riding a bike near her home in Khan Yunis – a town adjacent to one of many Jewish settlements, all of which are illegal under international law.
Aya Mahmud Fayyad was showing her new school uniform to her friends when Israeli soldiers fired from an observation post from a Jewish settlement, said relatives.
The girl’s mother, Um Isam, told mourners at the family home that Aya had been killed as she showed off her clothing ahead of the start of the school year on Monday.
She described Israeli Prime Minister Ariel Sharon as “a terrorist who cannot live without seeing the blood of Palestinian children”.
The girl’s uncle, Arafat Fayyad, told the funeral there was no justification for the soldiers’ opening fire.
“This is the Israeli army killing children without reason,” he said.
Resistance fighters lined the streets during the funeral and called for members to retaliate.
In the other attack on Saturday, an Israeli army helicopter fired several missiles at a car in the Buraij refugee camp – killing two Hamas fighters.
Palestinian security officials said Abd Allah Aqil, the leader of the Islamic group’s military Izz al-Din al-Qassam Brigades in central Gaza, was killed in the missile strike along with Brigades member, Farid Mayat.
All that remains of Abd Allah Aqil
Muhammad Nazzal, a member of Hamas’s political bureau in Beirut, told Aljazeera that assassinating Hamas members proved Sharon was not interested in peace.
“The people of Palestine will do nothing but resist the Israeli occupation and defend themselves,” Nazzal added
In Jenin, fighting erupted between Palestinian fighters and Israeli occupation forces.
Our correspondent reported that it happened when Israeli tanks attacked the al-Marah district and surrounded a fighter’s house.
Call to US
Palestinian Information Minister, Nabil Amr, said the attacks on the Buraij refugee camp in Gaza destroyed any chance of talks with Israel and called on the US to intervene and halt the cycle of violence.
“This attack will undermine our efforts to bring in peace and will also put an end to any hopes to resume the process,” Amr said. “We hope our friends, the Americans, will intervene to prevent deterioration of the situation.”
Meanwhile, at least 10,000 people joined in the funeral march for the two Hamas fighters, firing in the air, calling for revenge and chanting “[Israeli Prime Minister] Sharon, prepare the coffins!”
On Friday, the US State Department said both sides had to act to advance the peace “roadmap” which, among other things, aims at establishing an independent Palestinian state by 2005.