Gaza health ministry spokesman Ashraf al-Qudra said 27-year-old Mohammad Al-Masri died of his wounds after being shot near the border fence west of the Beit Lahiya area.
Another man was in a moderate condition following the incident, Qudra said.
A spokeswoman for the Israeli army told AFP that "two suspects approached the security fence of the northern Gaza Strip."
After one of the figures continued to advance even after they were ordered to halt and warning shots were fired, "the force fired toward the lower extremities of a suspect," the spokeswoman said.
Earlier on Friday, a Palestinian toddler was burned to death in the West Bank village of Dura in an arson attack by suspected Israeli settlers.
