The official Palestinian news agency WAFA said a 20-year-old man from Jenin refugee camp was killed in the incident between the town of Qalqilya and the Jewish settlement of Kedumim.
The Islamist group Hamas identified the dead man, Aref Lahlouh, as a member.
Violence in the West Bank has surged over the past year, following stepped-up raids by Israel in response to a spate of Palestinian street attacks in its cities. At least 19 Palestinians, including militants and civilians, have been killed by Israeli forces in the West Bank since Jan. 1.
There were no Israeli casualties in Wednesday's incident.
The army released CCTV video it said was of the attack, in which a man emerges from a car at a bus stop, apparently brandishing something in his hand. The footage shows the man running at the soldiers, before collapsing when they appear to shoot him.
(Writing by Dan Williams and Nidal al-MughrabiEditing by Raissa Kasolowsky)
