JERUSALEM (AFP) - Israeli troops began redeploying in the Gaza Strip in what appeared to be a step toward an announced scaling back of their operation there, during a day in which four more Palestinians were killed.
"Israeli forces operating in the north of the Gaza Strip have begun redeploying as part of their operation aimed at reducing Qassam rocket fire on Israel," an army spokesman said.
Palestinian witnesses reported earlier that armoured vehicles withdrew from the Jabaliya refugee camp at the centre of the action begun on September 28.
Israeli public television also announced a withdrawal of some troops from the same area.
Israeli Prime Minister Ariel Sharon was earlier reported to have ordered a redeployment of troops as his deputy defense minister said the operation, designed to put an end to Qassam attacks on Israel, had now met its main objectives.
Public radio said Sharon had agreed for a redeployment of troops to take place on either Friday or Saturday.
At least 128 Palestinians have been killed since the operation began.
The day started with three militants killed in a pre-dawn helicopter strike on the Jabaliya camp, the main focus of Israel's Operation Days of Penitence.
Also in the camp, an elderly Palestinian woman was shot dead in the evening when Israeli troops opened fire.
The latest deaths bring the number of people killed since the September 2000 start of the Palestinian uprising to 4,492, including 3,464 Palestinians and 954 Israelis.
Deputy Defense Minister Zeev Boim told the radio the campaign was being scaled back, partly as a gesture to Palestinians at the start of the holy Muslim month of Ramadan, although troops would not immediately leave the territory.
"We have no desire to make it difficult for the population," Boim said. "The operation has met its objectives and the level of Qassam attacks has dropped considerably."
But he added "it has not been decided to put an end to the operation", Israel's deadliest since the start of the Palestinian uprising four years ago.
Gaza has seen an upturn in violence ahead of next year's planned withdrawal of Israeli troops and settlers, with various militant groups wanting to claim credit for forcing the pullout.
Sharon's office confirmed that the prime minister would hold talks with settler leaders on Sunday when they are expected to repeat their opposition to the whole project.
The violence in Gaza has cast a shadow over the start of Ramadan, which is being marked by Muslims in Israel, the Gaza Strip, West Bank and occupied Arab east Jerusalem.
Hundreds of extra police were drafted into Jerusalem to prevent any outbreaks of violence during Friday prayers at the city's Al-Aqsa mosque.
Around 90,000 people were estimated to have attended prayers at Islam's third holiest site in the heart of the Old City, the vast majority Palestinians from east Jerusalem or Arab Israelis, although a small number of elderly West Bank residents were allowed in.
A helicopter and a hot air balloon hovered overhead to monitor the security situation but there were no reports of any disturbances.
Israeli authorities on Thursday decided not to restrict access to the mosque, despite safety fears over ongoing repair work.
The mosque compound, which is called Haram al-Sharif (Noble Sanctuary) by Muslims, houses the Dome of the Rock (Omar Mosque) and the Al-Aqsa Mosque.
The site is also revered by Jews as it was once the site of the Jewish temple, the holiest shrine in Judaism, which was destroyed by the Romans in 70 AD.
Sharon conveyed his best wishes to Israeli Arabs for the start of Ramadan, wishing them "an easy fast".
"Prime Minister Sharon wishes Israeli Muslims feelings of brotherly affection and solidarity with all Israeli citizens, whatever their faith," a statement said.
"Prime Minister Sharon said that Israel would make every effort to create a situation of peace and security in the country."
In another development, an Israeli army officer who allegedly emptied his gun into an already dead Palestinian schoolgirl was cleared by an investigation Friday, pending the outcome of another enquiry.
The unnamed officer was suspended Wednesday following the October 5 incident in which the 13-year-old girl was shot dead by soldiers in the southern Gaza town of Rafah on suspicion she was carrying explosives in her school satchel.
According to a fellow soldier, the officer then fired into the girl's body several times.
"The investigation did not find that the company or the company commander had acted unethically during the incident," an army statement said. "If a military police investigation will find otherwise he will be relieved from of any command duty."