A Palestinian militant was killed on Thursday after an Israeli missile struck near him. The attack took place a day 11 Palestinians were killed during an Israeli raid into the coastal territory.

Residents said the missile attack killed one gunman and wounded two others from the Islamic Jihad militant group. An Israeli army representative said, "The army attacked a group of militants in northern Gaza who had just fired a rocket at Israel."

Israel had launched a raid into the northern Gaza town of Beit Hanoun on Wednesday, following a surge in cross-border rocket salvoes. Palestinian militants fought back.

The Islamist group Hamas, which seized control of Gaza from rival forces loyal to Palestinian President Mahmoud Abbas in June, said Israel would "pay heavily" for the attack.

Israel's army said its troops had pulled back overnight after Wednesday's raid, but the deputy defense minister said on Thursday the lull in fighting would not last.

Witnesses said Israeli troops pulled back to positions they held earlier inside the coastal territory.

At least 21 Palestinians were also wounded in some of the fiercest fighting since Hamas seized control. One Hamas militant who was wounded on Wednesday died in hospital early on Thursday.