Security forces raided homes in the Samaria region of the West Bank at least three times over the past two weeks after receiving intelligence the terrorist was hiding inside.
Two of these raids took place over the past 24 hours in the village of Burqin, east of Jenin. The troops spent some 12 hours in the area on Saturday, but the terrorist remains at large.
Palestinian health officials said a Palestinian teenager was killed in the clashes that erupted over the raid in Burqin, when some 200 Palestinians hurled stones at IDF vehicles.
An IDF spokeswoman said troops had responded with non-fatal riot dispersal measures against Palestinians throwing rocks and firebombs and then with live gunfire at the main instigators.
The Palestinian Health Ministry said the teenager killed on Saturday was 19 years old, while the hospital in Jenin where he was taken said he had been shot in the head.
The IDF spokeswoman said he had climbed onto a military vehicle and had opened its door before he was shot.
At least 10 Palestinians have been arrested so far on suspicion of direct or indirect involvement in the attack, including some who assisted the terrorists before and after the shooting. Others with close ties to Jarrar were detained for questioning in an effort to shed light on his location.
The extensive "high-signature" operations are expected to continue in the coming days, with troops from Special Forces units, the Givati Brigade's reconnaissance battalion, and Border Police taking part.
The IDF's working assumption is that Jarrar is armed, would not want to turn himself in, and would likely open fire at soldiers coming to arrest him.
The terror cell he led used an M-16 assault rifle, which indicates the attack was planned in advance and might have been bankrolled by an outside source, such as Hamas in Gaza.
Reuters contributed to this report.