The UN Security Council called for a speedy and transparent investigation after a senior Palestinian official died during a confrontation with Israeli soldiers.

The Palestinian leadership has blamed Israel for "killing" 55-year-old Ziad Abu Ein on Wednesday, which came during an anti-settlements protest march by roughly 300 Palestinians who intended to plant olive trees as a symbolic act.

Israeli authorities say an investigation has been launched and called for calm, amid speculation the Palestinian Authority would suspend security coordination with Israel in the West Bank.

A Security Council statement issued late Friday "encouraged the parties to ensure that a swift and transparent investigation is undertaken. Council members took note of the willingness of the government of Israel to conduct a joint investigation into the incident.

"The members of the Security Council called on all sides to exercise maximum restraint and to refrain from steps that could further destabilize the situation."