Israeli troops came under fire from a car in the occupied West Bank on Saturday and shot back, killing two Palestinians, Reuters quoted the army as saying.
The Palestinian health ministry confirmed the deaths of two men, aged 23 and 24, near the city of Jenin, among areas of the northern West Bank which have seen intensified raids by Israel following a spate of street attacks in its cities last years.
Palestinians want the West Bank for a future state.
US-sponsored talks with Israel on that goal stalled in 2014.
There were no Israeli casualties in Saturday's incident, the army said.
The Palestinian militant group Islamic Jihad claimed the two dead men as its members. One of them was also claimed by Al Aqsa Martyrs' Brigades, an armed offshoot of Palestinian President Mahmoud Abbas' Fatah faction.