Two Israeli soldiers were wounded when they were stabbed by a Palestinian outside a West Bank settlement on Wednesday.
One of the wounded soldiers fatally shot the assailant, according to the Israeli military.
AP reports that both soldiers were taken to hospital, one in critical condition with a stab wound to the neck.
Similar attacks by Palestinians on Israeli soldiers and Jewish settlers in the West Bank and Jerusalem flared up at the end of 2014, but these areas had been experiencing relative calm before this incident.
Cabinet Minister Naftali Bennett of the nationalist Jewish Home party praised the wounded soldier's quick response.
"This should be the fate of anyone who harms innocent Jews," he said. "This is how such a serious incident must end."
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