Soldiers shot dead Majid Abu Dush in the town of Dura, near al-Khalil (Hebron) on Tuesday, Palestinian and Israeli sources told our correspondent.
Occupation soldiers seized the corpse.
Israel re-invaded the town, backed by bulldozers.
Meanwhile, nine Palestinians, including a teenager, were detained in the West Bank city of Jenin overnight.
Israeli military officials claimed Fadi Walid Ibrahim Abu al-Huda, 17, was planning to detonate a bomb strapped to himself in the Jewish state.
Others detained were members of Hamas.
Earlier on Tuesday, Palestinian security adviser Jibril al-Rajub proposed an indefinite ceasefire, a suggestion immediately brushed off by Israel as a “honey trap”.
In the past week Israel has stepped up its rhetoric, threatening to “remove” Palestinian President Yasir Arafat, without specifying what actions it would take.
One Israeli official suggested assassinating Arafat, sparking outcries from Palestinians that the Jewish state was trying to throw them into chaos.