Hadar was the daughter of a local football boss, Arieh Hershkowitz.
The Palestinian Authority condemned the attack straight away, saying it was wrong to attack innocent people on the street.
In other Middle East violence, an eight-year-old Palestinian boy was apparently shot dead by Israeli forces, a Palestinian hospital said.
The Israeli army said its soldiers were returning fire after being attacked by the Palestinians.
This new wave of violence came as Israeli leader Ariel Sharon arrived in Britain on Wednesday for talks with Tony Blair.