"An assailant drew a knife and attempted to stab a soldier," an Israeli army statement said. "Responding to the attack, forces fired at the perpetrator, resulting in her death."
Palestinian hospital officials named her as 17-year-old Kalzar al-Uweiwi.
Palestinian security sources said Israel passed her body to Hebron hospital so she could be buried by her family.
The incident took place as Washington's UN ambassador, Samantha Power, arrived for talks with Israeli and Palestinian leaders.
Since the current round of bloodshed erupted at the beginning of October, 167 Palestinians have been killed by Israeli forces. Most were carrying out attacks but others died during clashes and demonstrations.
The violence has claimed the lives of 26 Israelis, as well as an American, a Sudanese and an Eritrean, according to an AFP count.
The army statement said today's incident occurred near Hebron's shared religious site known to Jews as the Cave of the Patriarchs and to Muslims as the Ibrahimi Mosque, a site of frequent friction between the sides.
A large number of the Palestinian knife, gun and car-ramming attacks that began on October 1 have occurred in and around the city.
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