Diyarbakir police said in a statement that illegal protests took place in the province’s Sur district during the early hours of Wednesday.
The sources said youths linked to the PKK opened fire on police with rifles and threw homemade explosives in the largest southeastern city of Diyarbakir around midnight, triggering police retaliation.
The dead youth, Abdulkadir Cakmak, suffered three gunshot wounds to his head and chest and was taken to hospital where he died, the sources said. Relatives said he was shot by police.
Police released video footage of the incident showing an individual crouching down and apparently taking aim with a rifle before suddenly collapsing to the ground.
Police also said the policeman's injuries were not life-threatening.
It was the latest in a series of deaths highlighting the fragility of a two-year-old peace process between the government and the Kurdistan Workers Party (PKK) militant group, which has waged a three-decade insurgency in the region.
The incident occurred 10 days after another youth was shot dead during clashes in Yuksekova, near the border with Iran.
In October, dozens were killed during unrest by pro-PKK Kurds claiming the government failed to help Syrian Kurds fighting ISIL in the besieged town of Kobani on Turkey's southern border.
The violence has complicated efforts to end the PKK'S 30-year-old insurgency, in which more than 40,000 people have been killed. The PKK is designated a terrorist group by Ankara, the United States and European Union.