Egyptian forces have begun to prevent Palestinian vehicles from crossing sections of its Gaza border which were destroyed by Hamas militants last week.
The tightening of border controls came as Hamas and Egyptian officials met in Cairo to discuss the crisis.
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Hamas has indicated that it could prevent Egypt from sealing the border if its role is not recognised.
Map of the Egypt-Gaza border area
Hundreds of thousands of Palestinians had been crossing freely into the Egyptian border town of Rafah for over a week to buy essential supplies and visit relatives.
Hamas personnel were reported to be working alongside Egyptian police in an attempt to stem the flow of people.
"The order was given, there seems to have been an agreement," an Egyptian policeman at Saladdin Gate told Agence France-Presse.
Egypt has used barbed wire and cement to close sections of the border and security personnel have been deployed along the breaches.
But pedestrians were still able to cross the border on Thursday and heavily-laden Egyptian trucks were continuing to bring supplies into Gaza.
A senior Egyptian security officials told Reuters news agency that there was no official word on when the borders would be closed completely.
He said any closure would be incremental to avoid friction with Palestinians.
'Contradicts reality'
Egypt has held talks in Cairo with both Hamas, which controls Gaza, and the President of the Palestinian Authority Mahmoud Abbas.
Hamas official Sami Abu-Zuhri told Reuters that Thursday's talks had "concentrated on the facilitation of movement and the entry of Palestinians on the Egyptian-Palestinian border".
"It is still early to talk about details," he said.
Mr Abbas has rejected Hamas' claim over the border and reiterated his refusal to negotiate with Hamas leaders.
"Hamas has to end its coup in Gaza, accept all international obligations, and accept holding early elections," he told a press conference.
"After that, our hearts are open for any dialogue."
But Hamas leader Mahmoud Zahhar said yesterday that discussion about shared control "contradicts reality".
"The reality is that there is a legitimate government. We will not give up our legitimacy to anybody," he said.
Cairo wants to see a return to a 2005 agreement by which the border would be controlled by the Palestinian Authority and monitored by the EU and Israel.
(BBC)
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