Israeli soldiers have shot and killed a Palestinian during an army raid of a West Bank refugee camp, according to Palestinian and Israeli sources.

Mohammad Salhi, 32, was shot dead during an early-morning raid in the Faraa refugee camp in the northern occupied West Bank on Tuesday. He was not an intended target of the raid.

According to Palestinian residents of the camp, Salhi was awakened when the soldiers broke into his home. He was shot dead after he confronted them.

Palestinian medical sources said Salhi was brought to a hospital in the nearby town of Tubas hours after he was shot and after the army had left the camp.

They said he was hit by five bullets to the neck and chest and was pronounced dead on arrival.

READ MORE: 2016 'deadliest year' in decade for West Bank children

The Israeli army said that Salhi was shot dead after he tried to stab its soldiers during the raid.

But according to the Palestinian Foreign Ministry, Salhi was "executed in cold blood" by soldiers in the courtyard of his home, in front of his mother.

The foreign ministry's statement identified him as a former prisoner in Israeli jails.

Yasser Abu Kishk, a resident of the camp, also rejected the Israeli version of the story.

According to Kishk, the soldiers broke into Salhi's home to reach a neighbour's home.

"Salhi was awakened by surprise and he found himself face-to-face with the soldiers," he told the official Voice of Palestine radio station.

"Apparently Salhi did not know what was going on, so he confronted the soldiers to protect his ailing mother and family when he was shot."

Human rights groups have continually condemned Israeli raids in the occupied West Bank, and what they describe as a "shoot-to-kill" policy employed there.

The soldiers left the camp after arresting three Palestinians.