Eli Bin of Israel's emergency services says a third Israeli was wounded in the attack today afternoon.
Israeli media reported that a Palestinian man got out of his car near the city of Hebron and fired at a car with an Israeli family.
The reports say the Palestinian fled the scene after the shooting.
No other details were immediately available.
Since mid-September, 14 Israelis have been killed in Palestinian attacks, mostly stabbings. Seventy-nine Palestinians have been killed, including 50 who Israel says were involved in attacks.