A 28-year-old Palestinian was shot dead by Israeli security forces in Beita, a town adjacent to the evacuated Evyatar outpost in the West Bank.
The man was identified as Muhammad Ali Khabisa, who was also a father to an eight-month-old child.
His killing takes the Palestinian death toll in Beita since the nearby outpost was established to seven. Six of the Palestinians were killed by Israeli security forces during protests.
Weekly demonstrations in Beita began when Evyatar first sprung up on a hilltop near Nablus in May. The protests often escalate into clashes between Palestinians and Israel's security forces.
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According to demonstrators who spoke with Haaretz, Israeli authorities began using live fire in the last hour and a half of the protest on Friday. However, the demonstration was more restrained than others in the past, a demonstrator said.
However, the IDF said that "violent riots" are taking place near Evyatar, with "hundreds" of Palestinians are burning tires and throwing stones at Israeli troops.
At least seven other Palestinians were injured by rubber bullets during Friday's protest, Palestinian medics said.
The army also said they are familiar with the claim of the killing and that the incident is under investigation.
The Evyatar outpost was evacuated in early July, sparking tensions in the West Bank. Under a deal between settlers and Israeli authorities, most of the outpost's structures were allowed to remain there, prompting concerns by Palestinians that it may be allowed to be repopulated.
Reuters contributed to this report.