Palestinian medical officials say Israeli forces killed a Palestinian fighter and wounded another in the Gaza Strip Saturday.
An Israeli army spokesman said Israeli soldiers opened fire when they saw an armed man planting a bomb near the border with Israel.
Also Saturday, the Israeli army announced it will impose a complete closure on the West Bank during the Jewish festival of Shavuot, which ends Monday.
Israeli media reported Saturday that Prime Minister Ehud Olmert is due to hold talks on Tuesday with top officials on possible plans to launch a major new offensive into the Gaza Strip to stop Palestinian rocket fire.
Separately, top Palestinian negotiator Ahmed Qureia said Saturday that Israeli and Palestinian mediators have agreed to prepare a document outlining their positions on all issues discussed during peace negotiations.
Prime Minister Olmert and Palestinian President Mahmoud Abbas resumed U.S.-brokered peace talks last November, but progress has been slow. The two sides have expressed hope at reaching a peace deal before U.S. President George Bush leaves office early next year.
But Qureia said Wednesday that reaching a peace agreement with Israel before Mr. Bush leaves office will take a "miracle." He told reporters in the West Bank that there is still room for progress in Israeli-Palestinian negotiations.
Some information for this report was provided by AFP, AP and Reuters.