The Israeli military says army troops killed a Palestinian teenager who they believed to be armed, but later found a toy gun beside his body.
The military said the incident occurred Tuesday in the West Bank city of Hebron.
In another development, Israel has finished drawing up a list of Palestinian prisoners it plans to free as part of efforts to bolster Palestinian President Mahmoud Abbas.
The 250 prisoners selected to be released are from the Fatah faction of Mr. Abbas. He heads a moderate government in the West Bank after the militant group Hamas seized control of the Gaza Strip last month.
Palestinian spokesman Mustafa Barghouti says the Israeli prisoner release is not enough. He says only 250 prisoners are being freed out of 11,000 Palestinians in Israeli jails.
Some Israelis are also criticizing the prisoner release, saying it will lead to more terrorism. The Israeli government says the prisoners on the list were not directly involved in attacks on Israelis.