A captured Israeli soldier has been moved across the border into Egypt, beginning an elaborate prisoner swap deal in which hundreds of Palestinian inmates are to be freed in return for the captured tank crewman, Palestinian officials in Gaza said.

Gaza militants launched barrages of rockets deep into Israel early today and Israeli aircraft struck targets in the Palestinian territory in the aftermath of the deadliest attack against Israelis in three years.

Israel increased the trickle of badly needed goods flowing into the Gaza Strip today, a military spokesman said, in the latest stage of a four-day-old truce with Hamas militants.

Hamas militants today released a recorded message from captured Israeli soldier Cpl Gilad Shalit, the first sign of life from the young serviceman since he was abducted exactly one year ago.

One of the Palestinian militant groups that captured an Israeli soldier last summer said the serviceman is in “good health”, the first time it has given details about his condition.

Palestinian police arrested a Hamas-linked militant in Gaza City this morning, sparking a gun battle that left two police officers wounded, witnesses said.

A statement from Palestinian groups purporting to hold an Israeli soldier have demanded the release of women and children under 18 held in Israeli prisons.

Palestinian militants from the Gaza Strip infiltrated Israel through a tunnel early today, attacking a military post and killing two Israelis before soldiers shot dead three gunmen, the army, militants and witnesses said.

An Israeli aircraft attacked a training camp used by Palestinian militants in Gaza City today, killing at least four militants, Palestinian security officials said.