The Palestinian resistance group Islamic Jihad said the man was one of its members.
In a statement, the Israeli military said soldiers opened fire at two Palestinians placing an explosive device next to the fence in the enclave, Reuters reported.
It said one of the men was killed and a military bulldozer removed his body.
Witnesses and health officials said two other Palestinians were wounded by Israeli gunfire directed at a group of people that had approached the area and tried to recover the body.