Security forces were combing the area around the West Bank settlement of Har Bracha, near Nablus, on Tuesday after shooting at two Palestinians who broke into an empty house in the community.
Soldiers opened fire, injuring one of them in the lower body and then capturing him. The second one fled.
Reports said the motive appeared to be criminal.
Har Bracha was home to terror victim Itamar Ben-Gal, 29, who was stabbed to death in February at a hitchhiking post near the entrance to the Ariel settlement by an Arab Israeli man from Jaffa.