"An assailant rammed a vehicle into three Israelis in a car ramming attack northwest of Ramallah," a statement said of the latest in more than seven months of attacks.
"Forces responded to the imminent threat and fired towards the assailant, resulting in his death."
The injured Israelis were taken to hospital for treatment, the statement added without giving further details about their condition.
However, the Magen David Adom rescue service said one of those hit by the car had been badly injured.
The attack was the latest in a wave of violence that has killed 204 Palestinians and 28 Israelis since October 1.
Most of the Palestinians killed were carrying out knife, gun or car-ramming attacks, Israeli authorities say.
Earlier today, police said they had arrested a Palestinian teenager in Jerusalem's Old City suspected of stabbing a Jewish man in his 60s there late yesterday.
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