The incident took place after Israeli troops intercepted two men spotted approaching a barrier along the boundary of occupied West Bank near the town of Jenin.
An Israeli soldier and two Palestinians have been killed in a shootout in the occupied West Bank, according to the Israeli army and Palestinian officials.
"Last night, an officer was killed as a result of an exchange of fire after a clash with two Palestinian gunmen near the Al Jalama crossing, Jenin district," the Israeli army said in a statement on Wednesday.
The army said two Palestinian gunmen were also killed in the clash.
The Palestinian health ministry also confirmed "the martyrdom of the two young men" near the checkpoint north of Jenin.
Palestinian official news agency Wafa identified the dead Palestinians as Ahmed Ayman Ibrahim Abed, 23, and Abdul Rahman Hani Subhi Abed, 22.
Wafa, citing a local security source, said the two men were from the town of Kafr Dan, west of Jenin, adding that their bodies were held by Israeli forces.
Security has been tightened as Israeli football club Maccabi Haifa host French giants Paris Saint-Germain in a Champions League tie later on Wednesday at their base just 60 kilometres (40 miles) from Jenin.
The Israeli army has closed the Al Jalama checkpoint to the movement of vehicles.
Wednesday's deaths are the latest in a flare-up that began in mid-March.
There have been deadly attacks on Israeli targets. In response, Israel has launched near nightly raids on West Bank towns and cities that have killed dozens of Palestinians.
Last week, armed forces chief Lieutenant General Aviv Kohavi said "around 1,500 wanted people were arrested and hundreds of attacks prevented" in the operations.
Israel has occupied the West Bank since 1967, when it illegally captured the territory from Jordan.