Mohammed El-Amaira, a member of the Palestinian Authority security services, was convicted of planning and carrying out a July 2016 attack during which gunmen opened fire on a car near the city of Hebron, an army statement said.
The car crashed and rabbi Michael Mark, who led a religious school in the Israeli settlement of Otniel, was killed, while his wife and two young children were injured.
Amaira was convicted of driving the car used by the attackers, the army said.
He also received a second life sentence for preparing armed attacks that did not ultimately take place, it added.
He was ordered to pay a fine of 250,000 shekels (USD 67,500, 64,000 euros).
In August, the Israeli army destroyed Amaira's house in the Palestinian village of Dura in the West Bank.
Mohamed Fakih, another Palestinian accused over the attack, was killed in July 2016 during clashes with soldiers.
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