Ghassan Daghlas told the Associated Press that Mr Odeh had been at work when a group of settlers trespassed onto his land and then ordered him to move. The military said the mortar fire appeared to have come as retaliation for the tunnel incident.
Mohammad Amireh, a local anti-settlement activist, said that Palestinians performed Friday prayers in their olive groves, south of the village, expressing their condemnation of the killing of a Palestinian farmer by Israeli Jewish settlers in Nablus-district village of Qusra.
The parent escorts ushered the boys into a cave to keep them safe until Israeli security forces arrived, according to reports.
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The military said medical teams rushed to the scene to try to save the Palestinian.
According to human rights activists, the slain Palestinian was working in his field when he was shot, and the mob only arrived at the scene later.
Mahmoud Zaal Odeh died of his wounds after being shot by Israeli settlers, the sources noted. When he refused, one of them shot him in the chest, Daghlas said.
The BBC's Tom Bateman in Jerusalem says tensions between settlers and Palestinians in the occupied West Bank have been on the rise.
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On Thursday evening, police said a 20-year-old Israeli man was stabbed to death in the southern city of Arad.
Thursday's casualties became the latest in an intermittent two-year wave of violence.
Elrob and another Palestinian man were charged on October 29 with the October 4 murder of their Israeli employer Reuven Schmerling at their workplace in Kafr Qassem in central Israel.
Since September 2015, Palestinians have killed more than 50 Israelis, two visiting Americans and a British tourist in stabbings, shootings and car-ramming attacks.
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However, the cases registered under special and local laws in the state have decreased from 16,496 in 2015 to 11,282 in 2016. Mumbai also had the second highest number of rape cases, at 712 cases, after Delhi that had 1,996 cases.