The Israeli military confirmed its soldiers had shot a Palestinian but had no information on whether he had died.
Palestinian security sources named the man as Ibrahim Sarhan, 21, and said he was shot dead as he emerged from a mosque during an Israeli arrest operation in Al-Fara camp.
The Israeli military said Sarhan was shot as its soldiers carried out "routine activity" at the refugee camp.
"One of the Palestinians tried to flee arrest, at which point the soldiers began an arrest procedure, eventually firing at his lower body," a spokeswoman told AFP.
"The soldiers identified a hit, and the man was evacuated by Palestinian medics."
Palestinian prime minister Salam Fayyad accused the Israeli troops of holding up an ambulance on its way to the scene, leading to Sarhan`s death.
"I strongly condemn the murder of Ibrahim Sarhan," he said in a statement. "I also condemn the continued policy of Israeli military invasions into the Palestinian territories and the shooting of civilians."
Seven Palestinians were arrested in the raid, the Israeli military spokeswoman said, adding that an explosive device was hurled at Israeli troops during the operation, causing no casualties.
Shortly after the shooting, Palestinian militant group Hamas released a statement in Gaza saying Sarhan had been one of its activists in Al-Fara camp.
Around 800 people attended his funeral, many waving the green flags of Hamas and chanting as Sarhan was buried at Al-Fara`s cemetery.
The killing was the first time in six months that Israeli troops have shot dead a Palestinian in the West Bank. The military said it could not confirm whether there would be an investigation into the incident. (M014/K004)
Editor: Kunto Wibisono
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