The outpost near the village of Burin was the third to be set up as a protest against the Israeli settlements in the West Bank, Ynetnews reported. About 200 Palestinians set up tents.
Clashes were reported involving settlers, Palestinians and the military. Officials said one settler suffered minor injuries and a Palestinian was also hurt in the Saturday incident.
Abir Copti, a member of the Popular Resistance Committees, blamed settlers for the violence, saying they began throwing stones at the protesters in the outpost.
Wael Faqih, one of the Palestinian protesters, told Ynet the settlements are "eating away at the land of the West Bank and the village of Burin is the clearest example of that."
"We urge the world to come and see the Palestinian's peaceful resistance and the Israeli reaction of oppression, arrests and threats," he added.