Members of Israeli security forces and emergency services stand on the site of a reported attack in southern Hebron in the occupied West Bank, on August 21, 2023. AFP
The incident comes two days after an Israeli father and son were gunned down at a car wash in the town of Huwara, also in the West Bank, amid rising violence in the territory.
The Magen David Adom emergency service said in a statement that a woman was "confirmed dead" after she was hit by gunfire.
It added the man travelling with her was in a "serious condition".
The Israeli army, confirming the death of the 40-year-old woman, said the two civilians came under fire when they were driving.
The "shooting attack was carried out from a passing vehicle on Route 60 adjacent to the city of Hebron toward civilians who were driving in the area," it said in a statement, adding that troops were pursuing the attackers.
The West Bank has seen a surge in violence since early last year, with repeated Israeli army raids, violence by Jewish settlers against Palestinian communities and a string of attacks by Palestinians on Israeli targets.
Saturday's shooting of a father and son in Huwara sparked a massive manhunt in the West Bank as Israeli forces searched for the suspected attacker.
Huwara, a Palestinian town near the city of Nablus, has seen a number of settlers attacks on Palestinian since early last year.