A man was fatally shot in the central city of Ra'anana on Sunday, after an IDF soldier suspected him of being a terrorist who was about to launch an attack.
The man, in his 40s, was taken to hospital where he succumbed to his wounds.
A second man who was also on the scene, suffered light wounds by a bullet, and told the police that the man came at him with the knife.
Police said the victim, a resident of Pardes Hana in northern Israel, was wielding a knife and may have been directing it at another man, which prompted the soldier to shoot in what he thought was a terror attack.
Police confirmed the dead man had been found in possession of a knife.
Ra'anana shooting
The soldier is being investigated by the police to, among other things, establish whether he followed rules of engagement.
Earlier the force said there is no suspicion that an attack was underway and described the man who was killed, as a person in need of "professional diagnosis," which could indicate a mental disability.
Witnesses said he was approaching a bus stop in a menacing manner causing the soldier to believe there was a risk of an attack.