The radio station of Gaza's ruling Hamas movement says Hamas fighters have claimed responsibility for the mortar fire on the southern Israeli town of Kfar Aza.

The Israeli military says Palestinian militants have fired 1,950 mortar shells and rockets at Israel since the beginning of the year - almost equal to the amount fired in all of 2007.

The attacks often provoke Israeli retaliation, though the two sides have been trying in recent weeks to reach a truce with the help of Egyptian mediators.

Separately, a Palestinian man was shot dead north of the West Bank town of Ramallah on Friday.

The Israeli military confirmed a shooting involving settlers and a Palestinian man, but had no further details.

According to Israeli media, settlers said the Palestinian man fired at them and they returned fire. Palestinian villagers said the man apparently was hunting when the settlers killed him.

Abu Obeida, a spokesman for Hamas' military wing, said the attack that killed the 40-year old Israeli man targeted a military position.

Asked if the deadly attack would make it more difficult to agree to a truce, he replied: "We will continue to fire until the last moment" before a truce is completed.