Settler-monitoring official Ghassan Daghlas said dozens of residents of the Yitzhar settlement clashed with Palestinians who were playing in the snow.
An Israeli army spokeswoman said Palestinians approached the settlement and threw rocks at Israeli forces, who then fired warning shots.
Ma'an News Agency said Israeli forces arrived at the scene and attempted to convince the Palestinians to leave, but they refused.
Tareq Zedan al-Safadi, 22, was shot in the leg and was transferred to a hospital.
Meanwhile, in a nearby Qusra village, settlers from the Esh Kodesh outpost fired on Palestinians, wounding Samer Masameer, 26, in the leg, Daghlas said.
Aaron Carter is still in love with Hilary Duff
Millions of Getty images now available for free via embed tool