Israel's military said soldiers opened fire after "several suspects were spotted approaching the security fence in the southern Gaza Strip and attempting to sabotage it."
A Gaza health ministry spokesman said the man was shot by Israeli forces during clashes east of Deir al-Balah in central Gaza.
He was identified as Mohammed Abu Sharbeen, 20, from the southern Gaza city of Rafah.
At least 220 Palestinians have been killed by Israeli fire since major protests backed by Gaza's Islamist rulers Hamas began in March.
The majority have been shot during protests and clashes, but others have died in tank fire or air strikes.
One Israeli soldier was killed by a Palestinian sniper.
Israel says its actions are necessary to defend the border and stop infiltrations and attacks, which it accuses Hamas of seeking to orchestrate.
The often violent demonstrations usually peak on Fridays, but last week's was the calmest in months, amid talk of a truce deal between Hamas and Israel.
Such a deal would see the protests end in exchange for an easing of Israel's blockade of the coastal enclave.
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