Hamas leader Sheikh Yassin

The meetings came as a Washington-brokered ceasefire appears to be near collapse.

Since it was agreed a month ago, more than 20 Palestinians and 12 Israelis have been killed in continued fighting.

The Israeli army said its soldiers returned fire overnight after Palestinians attacked military outposts on the Israeli-Egyptian border near Rafah, and at the Gush Katif Jewish settlement in the Gaza Strip.

Shots were also fired near Ramallah and Hebron, in the West Bank.

Revenge call

About 8,000 Palestinians joined a funeral procession for Fawwaz Badran, an activist in the Islamic militant group Hamas.

On Friday, Hamas called for revenge against Israel, whom they blame for Badran's death in a car bomb attack.

A Jewish settler walks by burning debris in Hebron

Following the death of the Hamas activist, the senior Hamas leader in Gaza, Ismail Abu Shanab, told Reuters: "This is an assassination. This is a new crime... This incites us to more resistance, to more revenge because Israeli military arrogance does not stop except by power."

Hamas has been behind attacks that have killed scores of Israelis in recent years.

Deliberate targeting

Palestinian officials have accused Israel of assassinating at least 40 activists since the Palestinian uprising against Israeli occupation flared in the West Bank and Gaza Strip last September when peace talks stalled.

Israel has defended its decision to target those it believes are involved in "terrorist" attacks against its citizens.

The United States and UN Secretary-General Kofi Annan have urged Israel to end a policy which they say violates international law and threatens peace efforts.

Earlier this month, the Israeli cabinet reaffirmed its strategy of "active defence" against militants who planned or attempted to carry out attacks against Israelis.

Twenty-two Palestinians and 11 Israelis have died since the sides agreed to a US-brokered ceasefire on June 13.

At least 480 Palestinians, 125 Israelis and 13 Israeli Arabs have been killed since September.