The Palestinian Ministry of Health said the man, identified as Amir Atef Rayan from the village of Bani Hassan, died of his injuries.
The Israeli army said that Israeli forces shot dead a Palestinian who was said to have run towards them with a knife at a bus station in the occupied West Bank.
Citing an initial investigation, it said in a statement on Friday that the man arrived at a crossroads near the Jewish settlement of Ariel in a car, got off from it and “ran armed with a knife towards the bus station where civilians and IDF soldiers were standing.”
The Palestinian Ministry of Health said the dead man was Amir Atef Rayan. It added that he died of his wounds, a resident of the village of Qarawat Bani Hassan in Salfit in the West Bank.
Members of the Palestinian Red Crescent said that the occupation forces prevented their paramedics from reaching the young man for treatment before he was transferred to the hospital.
Pictures and videos posted online showed the Palestinian man lying face down at a crossroads near an Israeli settlement before being taken into an ambulance.
The Israeli army said it was pursuing everyone in the car who fled the scene.
The West Bank has seen sporadic violence since US-sponsored talks on establishing a Palestinian state alongside Israel stalled in 2014.
Settler violence against Palestinians has escalated in recent weeks after the killing of a Jewish settler by a Palestinian gunman in the northern parts of the West Bank.
The killing sparked a series of settler attacks that wounded at least four Palestinians, and sparked a series of confrontations between Palestinians and Israeli forces.
In 1967 Israel occupied the West Bank, which the Palestinians want to form the main part of their future state. About 600,000 Jewish settlers live in more than 130 settlements spread across the occupied territories, which also house more than 2.5 million Palestinians.
The Palestinians and the broader international community view the growing Israeli settlements as a violation of international law and a threat to a two-state solution to the conflict.