Khalid al-Usta suffered fatal chest injuries when occupation troops opened fire on a group of Palestinians who were throwing stones in the Old City area on Tuesday, witnesses added.
Six other people were also wounded in the incident, including a 17-year-old youth who is said to be in a critical condition.
The latest death brought the overall number of those killed since the September 2000 start of the Palestinian uprising, al-Aqsa Intifada, to 4234, comprising 3236 Palestinians and 927 Israelis, according to an AFP toll.
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There was no immediate response to the killing from the Israeli military. But Israeli sources alleged that troops had discovered two Qassam rockets, named after the military wing of the resistance Hamas movement, which were being manufactured in a building in the city.
Meanwhile, Aljazeera’s correspondent in the Occupied Territories reported that the Israeli army expanded its military operation in Nablus, focusing on its centre and the Old City, to include al-Ain refugee camp.
Israeli forces also launched search operations, arresting a number of Palestinians, including Muhammad al-Sahli, secretary-general of the Fatah movement’s al-Ain refugee camp wing, said the correspondent.