"An assailant stabbed a soldier at the Gush Etzion junction," an army statement said.
"Forces at the scene responded to the attack and shot the assailant, resulting in his death. The victim is receiving emergency medical treatment."
A spokesman for Israel's Magen David Adom emergency medical service said a 34-year-old man was taken to hospital with stab wounds to his face and hand.
Twenty-two Israelis, an American and an Eritrean have been killed in Palestinian attacks including stabbings, car rammings and gunfire targeting security forces and civilians since October 1.
At the same time, 139 Palestinians have been killed by Israeli forces, most while carrying out attacks.