Hamas militants have fought a gun battle with Palestinian security forces trying to arrest one of the group's senior political leaders, say witnesses and security sources.
Hamas members also shot at a convoy of cars escorting Palestinian intelligence chief Mr Amin al-Hindi, security sources said.
The shooting erupted in the Gaza Strip after dozens of Hamas members surrounded the home of Mr Abdel-Aziz al-Rantissi when Palestinian police arrived to detain him.
Dozens of Hamas members prevented Palestinian security forces from detaining Rantissi at his home. Calls to arms to defend Mr Rantissi were broadcast over mosque loudspeakers in the neighbourhood .
Palestinian President Mr Yasser Arafat, under international pressure to crack down on militants, has outlawed the military wings of Hamas and other groups and arrested dozens of militants.
Palestinian and Israeli security commanders have held a joint security meeting, but Palestinians said the meeting was a failure. West Bank security chief Mr Jibril Rajoub said the Israelis offered no political options.
Mr Rajoub said the Palestinians rejected an Israeli proposal, first voiced by foreign minister Mr Shimon Peres, to establish Palestinian control by stages in the territories. Under the plan, Israel would then ease its restrictions in the places where significant steps were taken against militants.