Four Palestinians, including at least three militants, were killed in the incursion on Sunday morning.

Israeli Prime Minister Ehud Olmert said the army had a "free hand" to target militants in Gaza.

He faces growing pressure to put an end to rocket attacks from the territory.

Israel and the Fatah faction of Palestinians - in charge of the West Bank - are pursuing a renewed peace effort launched at a US-hosted conference last November.

Israel has shunned any engagement with the Islamist group Hamas, which controls Gaza, and has continued security operations against militants there.

But despite raids and incursions that have killed scores of Palestinians over past months, there has been no let-up in the rocket attacks.

Incursion

Backed by aircraft, Israeli ground forces entered Gaza early on Sunday on a mission that the military said was targeted at the Gaza "terror infrastructure".

Palestinian health officials said more than 20 people, including civilians, were injured in subsequent clashes before the Israeli forces withdrew in the afternoon.

The latest operation comes as Prime Minister Olmert faces mounting domestic pressure over rocket attacks.

Israeli officials say more than 700 rockets and shells have been launched from Gaza since the beginning of 2008, and last week an eight-year-old Israeli boy lost most of his leg in an attack.

In a speech to Jewish American leaders in Jerusalem on Sunday, Mr Olmert said Israel had "a free hand to respond" and attack anyone who has "any kind of responsibility".

"That applies to everyone, first and foremost Hamas," Mr Olmert added.

Mr Olmert also commented on the peace talks with Fatah, which controls the West Bank.

He said the aim of the negotiations was to reach an understanding on "basic principles" for a Palestinian state by the end of the year.

(BBC)

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