Hamas, now in apparent full-control of Gaza, has declared clemency for all Fatah members and security forces, after seizing several senior officials, a spokesman for the group's military wing said.
The commanders of the National Security Force and the Presidential Guard were among those that had been held by Hamas, Abu Obeideh said on Friday.
The spokesman said: "The Izz al-Din al-Qassam Brigades has extended an amnesty to all the commanders of the security forces and Fatah officials who were arrested."
He said dozens of security officers and party officials had already been released under the amnesty.
"If you ask me Fatah and Hamas are the same: both seek power and both want to obtain it through violence"
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Earlier, Ismail Haniya, the Palestinian prime minister and Hamas member, said that the "unity government" would continue to function despite being sacked by Mahmoud Abbas, the president.
He called his dismissal and the declaration of a state of emergency on Thursday "hasty".
Nour Odeh, Al Jazeera's correspondent in Gaza, said: "We know that he can carry on leading the government in the Gaza Strip with the Hamas ministers who are in the Gaza Strip.
"We do not know how they will be able to fund the government, how they will bring in food and supplies or how they will be able to have any influence in the West Bank."
Abbas was expected to name an emergency government later on Friday, aides said.
Civilians poured into the presidential compound in Gaza City on Friday, hauling away fridges, satellite dishes, and doors, as Hamas fighters fired shots into the air in an attempt to disperse them.
"This is our money, the money of the people and we are taking some of it," one looter said.
But another resident nearby expressed concern at the chaos.
"This is a coup," said Abu Khaled. "What we see today is an indicator of the future, chaos will prevail."
Security force vehicles and weapons had already been taken by members of the armed men and some the compound's buildings were set on fire.
Portraits of Abbas and his predecessor, the late Yasser Arafat, lay on the ground as Hamas fighters showed reporters pools of blood where they said two of Abbas's guards shot themselves rather than surrender.
A Fatah official said the guards were killed.
Other armed men had their pictures taken sitting at Abbas's desk and in his bedroom.
With Gaza effectively under the control of Hamas, Israel and the United States were preparing to ease an embargo on the Palestinian Authority in order to channel funds to Abbas's Fatah-run West Bank administration.
|Haniya promises the government will|
continue to function in Gaza [EPA]
"If there will be an emergency government without participation of Hamas, then the funds can flow," a senior Israeli official said. "From our point of view, there isn't a Hamas government any more."
Fatah and Hamas had formed a unity government in March in a deal brokered at Mecca in an effort to overcome their differences.
The European Commission said on Friday it also fully supported Abbas and called for dialogue to end civil strife.
An EU spokeswoman said: "We call on President Abbas, the legitimate president of all Palestinians, to [do] his utmost to resolve the situation through dialogue and to work towards national unity and reconciliation."
The EU aimed to continue humanitarian aid to both the West Bank and Gaza, the spokeswoman said.
Israel's military said on Friday that all crossings into the Gaza Strip had been closed after Hamas seized control of the territory.
"The crossings are closed until further notice. There are constantly security assessments," an army spokeswoman said.
he closure includes the Erez crossing - the route for travellers between the territory and Israel - and the Rafah border terminal with Egypt.
Some 3,000 Palestinian travellers remain stranded in the El Arish area of Egypt due to the border closure, most of them anxious to go home and make contact with their families.
Hamas has said that it plans to take control of the Rafah crossing, which was previously patrolled by Abbas' Presidential Guard.
Under an Israeli-Palestinian agreement, it was monitored by European observers. It is not clear whether the monitors or Israel would accept such an arrangement.
Ninety-seven Palestinians, most of them aligned with Fatah and fleeing the advance of Hamas, sailed into the Egyptian port of El Arish on Friday aboard a fishing boat, Egyptian police said.
The boat contained members of the Preventive Security force, the civilian police force, the border guard, the Fatah-run intelligence service and the al-Aqsa Martyrs' Brigade, which is also affiliated with Fatah. Thirteen had been wounded in the fighting.
Overnight, about 20 Palestinian civilians also managed to enter Egypt through the main Rafah crossing point, thoughtit is officially closed.