The death toll rose again in northern Gaza today as Israeli forces and militants continued desultory exchanges of fire after the bloodiest day of clashes in the strip since Israel withdrew last summer.

Twenty-four Palestinians and one Israeli soldier have now been killed in fighting that broke out in the area after Israeli tanks and troops, backed by aircraft, seized control of a ribbon of land in an attempt to win freedom for a captured soldier and put Israel out of the militants’ increasingly longer rocket range.

After sunrise, Israel renewed its assault with two airstrikes, killing one militant from the Palestinians’ ruling Hamas Party, and wounding three, party and hospital officials said. The Israeli Defence Force (IDF) said that aircraft fired at four armed Palestinians in an area where there had been exchanges of fire. Two were wounded in the second airstrike, hospital officials said.

In a separate incident, a Palestinian teenager was killed by Israeli tank fire.

Israel, meanwhile, signalled its intention to reduce the scope of its operation near two Palestinian towns it invaded yesterday. Lieutenant Colonel Yaniv, a battalion commander, said he expected troops to wind up their mission on the outskirts of Beit Lahiya and Beit Hanoun within a day or two because their mission there would be accomplished.

A mile across a sandy waste from Beit Lahiya lie three deserted, rubble-strewn Jewish settlements, which Palestinian militants used as cover to fire 14 missiles towards and into the southern Israeli city of Ashkelon earlier in the week, more than seven miles north of the border.

The latest rocket attacks have caused concern for Israeli army chiefs and panic among civilians as they reached significantly farther inside Israel than at any time before.

Steve Farrell, Times Middle East correspondent who is in Beit Lahiya, said: "We had a look today at the Palestinian village of Atatra, about a mile from Beit Lahiya, which is the one populated Palestinian area where Israeli tanks did take up positions yesterday. The tanks were pulled up right in amongst the houses, inside the urban area, and there was fighting.

"The tanks have pulled back slightly now and there is a lull. It is Friday prayers and also the Jewish Sabbath, so I think both sides have decided to take it easy. There will probably be a lot of funerals later, which will keep people off the streets."

Amid the fighting, there was still no word on the fate of Corporal Gilad Shalit, captured on June 25 by militants affiliated to Hamas.

Israel insisted it was not planning to reoccupy Gaza, but military commanders said they had orders to win the soldier’s release and prevent militants from firing rockets, even if that meant repeated short-term incursions.

This morning Amir Peretz, the Israeli Defence Minister, and Lieutenant General Dan Halutz, the IDF chief of staff, toured a base in southern Israel that is a staging area for the operation.

"We have no intention of sinking in the Gaza mire," Mr Peretz repeated. On the other hand, "we will find a way to hurt anyone who tries to hurt Israeli citizens," he added, accusing militants of using Palestinian civilians as human shields.

Lieutenant General Halutz refused to say when Israeli forces would pull back from Palestinian territory. "It doesn’t mean there won’t be Qassam (rocket) fire if we leave tomorrow or the day after," he added. "But it does mean that terror organizations will pay a high price for every Qassam (missile) fired."

After touring Gaza’s main hospital, Ismail Haniya, the Palestinian Prime Minister, called for international intervention to stop the Israeli offensive, which he called a "crime against humanity."

His ruling Hamas movement, which has so far refused to recognise Israel, also issued a statement, saying that Israel’s expanded military offensive in Gaza had set back efforts to resolve a crisis over an abducted soldier, and hardened the defiance of militants.

Yesterday more than 20 Palestinians and one Israeli soldier died as heavy clashes escalated throughout the day. Israeli aircraft targeted Palestinian militants with missile strikes, while Israeli tanks took up positions among Palestinian homes. Apache helicopters hovered overhead, firing flares and machine guns to support ground forces engaged in fierce skirmishes with masked Palestinian gunmen.

An Israeli soldier died in one of the skirmishes - the first Israeli casualty. Israel Radio and Army Radio said the army was checking the possibility that he was killed by errant Israeli gunfire. The army spokesman’s office said he was killed by a Palestinian gunman.

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