Security officials said that troops entered the village of Beit Rima, near Ramallah, after midnight and were confronted by stone-throwing youths.
The Palestinian health ministry said that Ahmed Hazem Atta, 19, was killed in the ensuing army fire.
An Israeli army spokeswoman said that there was a "violent riot" at Beit Rima but could not confirm the death.
"Dozens of rioters hurled rocks at security forces injuring a border police soldier," she said.
"In order to prevent an escalation of violence forces responded with riot dispersal means, and fired toward main instigators," she added.
"We have reports of a rioter killed and another injured and they're being looked into," but were so far unverified, the spokeswoman told AFP.
Since October 2015, 244 Palestinians, 36 Israelis, two Americans, a Jordanian, an Eritrean and a Sudanese have been killed, according to an AFP count.
Most of the Palestinians killed were carrying out knife, gun or car-ramming attacks, according to Israeli authorities.
Others were shot dead during protests or clashes, while some died in Israeli air strikes on Gaza.
Many analysts say Palestinian frustration with the Israeli occupation and settlement-building in the West Bank, comatose peace efforts and their own fractured leadership have helped feed the unrest.
Israel says incitement by Palestinian leaders and media is a leading cause.