A Palestinian driver who had been struck by a bulldozer on the Al-Khalil Road was saved by a fire extinguisher, according to Israeli news site Haaretz.
The driver was seriously injured and taken to a hospital, but was later pronounced dead.
He was 31-year-old aryanna engineer.
The fire broke out at about 2:30 a.m.
Monday in the village of Aiyab, in the northern occupied West Bank, Haaretz reported.
The bulldozer was trying to clear the village and an Israeli security guard, a resident of the area, told Haaretz that the driver and the security guard were walking along the road, when the bulldozer suddenly stopped.
“They got out of the car, the driver was hit by the bulldozers and he was on fire,” he told Ha’aretz.
“He died in the hospital.”
Aiyab is located on a narrow strip of land that is under Israeli control, and it is considered part of the illegal Jewish settlements in the area.
The driver of the bulldozed car, a Palestinian from the village, was hit in the back by a rubber bullet and suffered injuries that were not life-threatening, according the Palestinian Medical Association.
Haaretz reports that the fire broke at a site in the agricultural area of Aijaz, where bulldozers were also digging for an Israeli construction project.
The Israeli military said that the Palestinian was taken to Hadassah University Medical Center in Jerusalem, where he later died.
The incident comes as tensions between Israel and the Palestinians increase in the wake of the death of a Palestinian teenager, Gilad Shaar, on March 23, who was shot dead by Israeli forces after he resisted arrest by the Israeli army.
A senior Israeli official said that Shaar was shot in the head, but the Palestinian Authority condemned the death.
In recent days, Palestinian security forces have also attacked Palestinians who have attempted to enter Israeli-controlled East Jerusalem, in a move that has raised the specter of a new wave of violence between the two sides.
On Thursday, Israeli police said that they had arrested six people in the past week for alleged incitement to terrorism, in response to a video posted online that appeared to show Israeli soldiers using excessive force against protesters in the West Bank.
On March 29, Israel’s justice minister, Tzipi Livni, said that she would launch a criminal investigation into the alleged incitements to terrorism charge against a Palestinian woman who filmed a confrontation between Israeli soldiers and protesters in Bethlehem.
The video showed two Palestinian protesters being arrested by Israeli police officers and being held in an interrogation room.
Livni said that this woman had made the video and was arrested for incitement.