"Israeli man murdered in stabbing attack in Ariel," police spokesman Micky Rosenfeld said in a statement, referring to the settlement in the occupied West Bank.
He said that security forces were searching for the attacker.
The Israeli army identified the attacker as a Palestinian and said the incident occurred at a bus stop at the entrance to Ariel.
The victim was identified by an internal settler communique as Itamar Ben Gal, in his 40s and a resident of the Har Bracha settlement in the northern West Bank.
It was the second fatal attack on Israelis in the northern West Bank in a month after Rabbi Raziel Shevah was shot dead on January 8.
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