Two killed in gunbattle as troops move into city

Two Palestinians have been killed in a gunbattle with Israeli troops.

Israeli tanks and bulldozers destroyed a Palestinian security post near a refugee camp, witnesses and hospital officials say.

Israeli troops moved into a Gaza City neighbourhood and fired at Palestinian security training facilities, Israeli army and Palestinian security sources say.

Israeli troops also stormed several houses and arrested people near the area where Palestinian militants had planted a 110lb bomb that destroyed a Merkava-3 tank and killed three soldiers earlier in the week.

According to reports, Palestinians also fired a high-powered Qassam-2-type rocket into Israel, near the Gaza Strip. The rocket landed in an open field in Kfar Azza. No one was injured.

"This is a serious aggravation, we cannot support such a threat and in spite of our warnings we have fired another rocket," said Olivier Rafowicz, from the IDF spokesman's office.

At el-Bourrej refugee camp south of Gaza City, Israeli tanks, military vehicles and bulldozers attacked a Palestinian security compound and clashes erupted between Israeli troops and Palestinian security forces and gunmen. Palestinians from the camp also joined in, throwing stones and petrol bombs, witnesses say.

During heavy exchanges of fire two Palestinians were killed, Palestinian security and hospital officials say. The IDF says armed Palestinians opened fire towards the Israeli soldiers. The army says its foray into el-Bourrej refugee camp was in response to Palestinians shooting over the fence into Israel, and that forces set up a checkpoints in the area to maintain control.

The rocket that was fired today landed in an open field, near a gas station at Kibbutz Kfar Azza, the IDF says.

Israeli officials have warned that the use of the rockets - which are more powerful than mortars and have a longer range - will constitute a new level of fighting and bring a strong reaction.