Israeli forces have killed an Islamic militant who tried to infiltrate a Jewish settlement in the Gaza Strip.
Islamic Jihad, one of several militant groups whose violence Washington has sought to quell with a "road map" to Palestinian statehood, claimed the gunman shot dead outside Dugit settlement overnight as its own.
The killing came after Israel rejected a conditional ceasefire proposal by Palestinian President Yasser Arafat.
A Palestinian newspaper said Israel could free 215 Palestinian security detainees next week as part of a prisoner-swap deal with Lebanese guerrilla group Hizbollah.
Senior Israeli sources declined comment on the report in Al-Qudsdaily but confirmed the release of Palestinian detainees was part of "accelerating" negotiations under way for the return of four Israelis held by Hizbollah since 2000.
Yesterday, Mr Arafat told international envoys behind the road map he was committed to reaching a total ceasefire with Israel, but insisted they dispatch a peacekeeping force to end three years of fighting.
Israel dismissed the call as a ruse by Mr Arafat to dodge an Israeli security cabinet decision in principle this month to "remove" him. Israel accuses Mr Arafat of fomenting violence in the revolt that erupted after statehood talks stalled. He denies it.