The Israeli military claimed in a statement that the incident occurred near the Palestinian town of Hizme, located seven kilometers from the Old City of Jerusalem al-Quds, on Wednesday morning.
It further alleged that the Palestinian woman tried to run down a group of soldiers who were conducting work along the separation barrier, and then tried to stab them.
The woman was shot and killed. No Israeli troops were injured in the purported incident.
Palestine TV later identified the victim as 29-year-old Palestinian doctor Mai Yousef Afaneh, a resident of Abu Dis village outside Jerusalem al-Quds.
On Saturday, Israeli forces shot dead a Palestinian woman over an alleged stabbing attempt at Qalandia checkpoint in the occupied West Bank.
Israeli police alleged that the 27-year-old woman, identified as Ibtesam Khaled Kaabneh, had kept walking towards guards at the crossing, despite repeated warnings to stop.
It further claimed that the woman, a resident of Aqabat Jabr refugee camp near the West Bank town of Ariha (Jericho), had approached them with a knife. An Israeli soldier then opened fire at her.
Palestine’s official Wafa news agency reported that Kaabneh was left bleeding helplessly on the ground for a few minutes before she was pronounced dead.
Many Palestinians have sustained injuries or lost their lives in similar incidents due to allegations that they attempted stabbing or car-ramming attacks.
Israeli troops have on numerous occasions been caught on camera brutally killing Palestinians, with the videos going viral online and sparking international condemnation.
The Tel Aviv regime has been criticized for its extensive use of lethal force against and extrajudicial killing of Palestinians who do not pose an immediate threat to the occupation forces or to the Israeli settlers.