Oweidat is the 25th Palestinian to have died in raids by Israeli security forces in West Bank in recent days. File photo
Ahmed Ibrahim Oweidat, 20, "succumbed to critical wounds sustained by live bullets to the head, at dawn today in Aqabat Jaber camp" which is near Jericho, the ministry said.
An Israeli army spokesperson told the media that the incident was under investigation.
The official Palestinian news agency Wafa said three men were injured when the "undercover" forces raided the camp overnight.
Violence has surged in Israel and the occupied West Bank as the Muslim holy month of Ramadan, the Jewish holiday of Passover and Christian Easter celebrations overlapped this month.
Attacks by Palestinians and Israeli Arabs in Israel have killed 14 people since late March.
Oweidat is the 25th Palestinian, including assailants, to have died in raids by Israeli security forces in the occupied West Bank in the same period.
Violent clashes have also occurred in the compound of the Al-Aqsa mosque in east Jerusalem, sparking fears of another armed conflict after an 11 day war last year was triggered by similar unrest.