"We have no knowledge of the story being circulated by Israeli sources and guarantee that no member of Hezbollah has been arrested in the past several days," the group said in a statement.

Senior Israeli naval and intelligence sources told reporters earlier the navy had on Wednesday caught the ship loaded with 36 CD-Roms with instructions for making bombs and other guerrilla techniques, as well as rocket fuses and remote detonator devices.

The Abu Hassan, a small 15-meter (50-foot) fishing boat, was intercepted in international waters off the northern Israeli coast and towed back to the port of Haifa, they said.

Mohammad Salem Abu Amar, a Hezbollah member was arrested aboard the ship with seven other crew members, they added.

The military sources said it was the first time they had evidence Hezbollah was sending its members to the territories rather than having Palestinian militants go to Lebanon for training.

WAR.WIRE