Military sources said the Palestinian teens were shot after they attacked Israeli police with knives in the Old City of Jerusalem al-Quds on Thursday.
The Palestinian Ministry of Health confirmed on Thursday that one Palestinian had been killed, adding that the condition of the other was unknown, Al Jazeera reported.
Israeli police said an officer was moderately wounded in the alleged assault.
The Israeli military regularly opens fatal fire on Palestinians, accusing them of seeking to attack its personnel.
Human rights groups have repeatedly slammed the Tel Aviv regime for its shoot-to-kill policy as a large number of the Palestinians killed at the scene of attacks did not pose any serious threat.
Israeli troops have on numerous occasions been caught on camera brutally killing Palestinians, with the videos going viral online and sparking worldwide condemnation.
The latest incident comes after Israel’s violent attack on the al-Aqsa Mosque compound in the occupied Old City of East Jerusalem al-Quds following Eid al-Adha prayers.
On Sunday, clashes erupted when Israeli police brutally attacked Palestinian worshipers who had gathered at the compound for the first day of the Feast of Sacrifice, which marks the culmination of the annual Hajj pilgrimage.
The occupied Palestinian territories have witnessed new tensions ever since US President Donald Trump announced his decision on December 6, 2017 to recognize Jerusalem al-Quds as Israel’s "capital" and relocate the US embassy in Israel from Tel Aviv to the occupied city.