Salame Abu Jamaa, 23, was shot in the head during a protest east of Khan Yunis, health ministry spokesman Ashraf al-Qudra said.
The Israeli army confirmed they had shot a suspect, saying they responded after Palestinians tried to breach the buffer zone between Gaza and Israel.
“The forces called the perpetrators to halt, followed by warning shots in the air, and upon the suspects’ continued assault, forces fired toward a main instigator, confirming a hit,” a spokeswoman told AFP.
Seventy-three Palestinians, including alleged attackers, and an Arab-Israeli have been killed since a wave of violence began on October 1. Nine Israelis have died.
The unrest and attacks began in and around Jerusalem and the West Bank, but later spread to Gaza, hit by three wars with Israel since 2008 and where Palestinians have protested against Israel’s ongoing blockade of the enclave.
There were also sporadic clashes in the West Bank city of Hebron on Friday following the weekly Muslim prayers, where one protestor was wounded in the head by a rubber bullet.
In Ramallah, also in the West Bank, Palestinians throwing stones clashed with Israeli troops next to the adjacent Israeli settlement of Psagot.