Palestinian medical sources said a dead woman had been transported to Khan Yunis' Nasser hospital and identified her as Nevine Abu Rejilah, 17.

The sources said another 15 people were wounded in the strike, some seriously.

Sources from the hardline Palestinian group Hamas said the target of the strike was a member of its armed wing, the Ezzedin al-Qassam Brigades.

The Israeli army confirmed the raid, saying it was aimed at a car carrying a group of Ezzedine al-Qassam militants who were on their way to fire mortar shells and homemade rockets, nicknamed Qassams, at Israeli territory.

"This (Hamas) unit is involved in firing Qassam rockets at Israeli communities," the army said in a statement, pointing out there has been a significant increase in the firing of Qassams and mortars by Palestinian militants in the last few months.

Since the start of the Palestinian uprising, or intifada at the end of September 2000, more than 140 Qassam rockets and over 1,700 mortar shells have been fired from the Gaza Strip towards Israeli targets, the army said.

However, the attacks, which often fall short of their targets, have not resulted in the death of any Israelis.

WAR.WIRE