Emergency services spokesman Ashraf al-Qudra identified the dead man as Fadel Mohammed Halawa, 32, saying the bullet had hit him in the back.
Qudra said the bullet appeared to have been fired from a nearby army watchtower at a man who was farming land near the border fence.
It was the first time a Palestinian from Gaza had been killed by Israeli fire since a seven-week war between Israel and Hamas militants ended with an Egyptian-brokered ceasefire on August 26.
