Seven Palestinians, including a local militant commander, have been killed during a covert Israeli operation in Gaza.
Reports say an Israeli soldier was also killed and another wounded after a firefight.
Palestinians said an Israeli unit travelling in a civilian vehicle had killed the Hamas Commander.
Sirens later sounded in communities across southern Israel and rockets were fired from Gaza, without causing harm.
According to Palestinian sources, the Israeli unit was about 3km (2 miles) inside the Gaza Strip, which borders Israel, when it fired at Nur Barakeh, a commander of the Izzedine al-Qassam brigades, Hamas’ military wing.
The incident is reported to have happened east of Khan Younis, in the south of the territory.
A gun battle erupted and Israeli tanks and aircraft opened fire in the area, witnesses said.