A Jewish settler shot and killed a young Palestinian man early on Friday south of al-Khalil.
The young man allegedly attempted to carry out a stabbing attack in the Tana Omrim synagogue before a Jewish settler opened fire on him, according to Israeli sources.
While settlers were asked to stay indoors, a comprehensive search operation was conducted in the surrounding areas.
In al-Khalil, 15 illegally constructed settlement outposts and 22 illegal settlements are home to 21,000 Jewish settlers.