Palestinian militant shot dead

Israeli troops shot dead a Palestinian militant and wounded seven bystanders late last night.

The violence followed talks on reducing the Israeli presence in the West Bank, in exchange for a reduction in Palestinian violence.

The talks stalled amid discord between high-ranking Israeli and Palestinian officials.

Troops have so far withdrawn from Bethlehem, but the West Bank City remains surrounded.

Plans to withdraw from the Gaza strip are on hold following recent spates of violence.