Islamic Jihad said one of its members was killed in a gun battle with Israeli troops.

The resistance fighter was one of a group who tried to penetrate the Israeli army's buffer zone along the frontier with Egypt, to attack the outpost.

The rest of the group escaped, as Israeli troops opened fire and a gun battle ensued. 

Earlier, witnesses in Rafah said soldiers on the fringes of the sprawling refugee camp shot dead 25-year-old Ahmad Braika as he headed to dawn prayers.

An Israeli army spokesman said he had no information on the reported incident, but was checking further.

On Tuesday, occupation troops killed two armed Palestinians in the northern Gaza Strip, and resistance fighters shot dead an Israeli soldier in the West Bank.

Israel on Saturday scaled back a 17-day offensive in north Gaza, the deadliest in four years. More than 130 Palestinians were killed in the onslaught and hundreds of homes destroyed.