The sources said Ezzedine Ghora, 23, was hit by two bullets in his arm and chest, and died before reaching hospital.
A statement from Israeli police said a border police force was in the Jenin refugee camp to conduct arrests.
"Upon leaving the camp, the force identified a suspect trying to throw an explosive device at them," it said.
One of the border police shot him and wounded him, the statement said, noting the device probably exploded near the suspect.
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