The soldier sustained moderate wounds during the incident Thursday, Ynetnews.com reported.
The Palestinian who was shot to death was standing near the stabber, who sustained moderate wounds. Palestinians authorities identified the dead man as Zakariya Abu Eram.
The attack on the soldier came after Israeli forces moved in Yatta to arrest an alleged terrorist suspected of smuggling funds to terror groups. Two other suspected terrorists attacked the soldiers, who were guarding a building, one of them stabbing a soldier using a pocket knife.
An Israeli investigation of the incident found the attackers were two teenagers, ages 14 and 15, and a paramedic who was standing near the building in which the arrest was being made.