One of the Palestinian fatalities, a 25-year-old man, was shot in the morning on Friday during clashes between Palestinian resistance fighters and Israeli occupation soldiers, as the troops were pulling out of the border town of Rafah, which they had entered on Thursday.
It was unclear how the second fatality, identified only as coming from the southern Gaza Strip town of Khan Yunis, was killed.
Israel Radio, citing Palestinian sources, said the third, a 21-years-old man, was killed in the region of Bait Hanun, where Israeli troops have been operating since Tuesday.
Palestinians said the Israelis raised six houses in Rafah near the border with Egypt.
Resistance fighters killed
Earlier, an Israeli army ambush killed five Palestinian fighters near the Gaza Strip settlement of Netzarim on Thursday evening, Israel Radio reported.
The fighters were ambushed as they were making their way to the settlement, which lies south of Gaza City.
It was unclear whether they planned to infiltrate the settlement or whether they intended opening fire on Israeli vehicles driving between the settlement and the Karni crossing point.
The soldiers initially killed one of the fighters and then spotted four others, who were killed in the ensuing gunfight. A sixth Palestinian was wounded in the clash and three others arrested.
Human bomber arrested
The Israeli army said it arrested a would-be Palestinian human bomber and two other wanted resistance fighters in the central West Bank town of Ram Allah overnight.
"The cell originating from Nablus (in the northern West Bank) was on the way to carry out a suicide bombing attack," said a military statement issued on Friday.
The informer was killed by
fighters from Martyrs Brigades
"The attack was due to take place on Friday, in an unknown location in Jerusalem," the Israeli military said, adding that a 12kg explosive belt had been seized and disarmed during the arrest.
It identified the person who was to blow himself up as 16-year-old Mutaz Qrini from the Askar refugee camp in Nablus.
The statement said the three men belong to the al-Aqsa Martyrs' Brigades, an armed group loosely affiliated to Palestinian leader Yasir Arafat's Fatah movement.
Meanwhile, Israeli forces withdrew from Ram Allah after raiding it overnight on Thursday, reported Aljazeera's correspondent in Palestine.
The occupation forces detained four Fatah resistance fighters and wounded another two Palestinians, the correspondent added.
In the West Bank town of Qabatiya, Palestinian fighters
executed a man accused of collaborating with Israel with
Wild celebrations broke out among the hundreds of spectators
after four fighters from the al-Aqsa Martyrs Brigades shot father-of-two Muhammad Rafiq Daraghma, 45.
Resistance groups have killed at least 30 fellow Palestinians
accused of being informers for Israel. Qabatiya residents said
Daraghma had guided soldiers to hideouts where they had
captured or killed fighters.