The man was returning from work in Israel when he was shot, they said.
The residents identified the deceased as a 39-year-old man who lives in the village but carries Jerusalem ID papers, allowing him to cross freely between Israel and the West Bank.
The Palestinian health ministry did not provide further details. The Israeli military said it was looking into the incident, according to Reuters.
The West Bank, Gaza and East Jerusalem, areas where Palestinians hope to create an independent state, were captured by Israel in the 1967 Middle East War. Violence has broken out often since US-sponsored peace talks broke down in 2014.