Palestinian factions are concerned about the future of a fragile three-month-old ceasefire after Israeli "violations", a Fatah leader said on Sunday after meeting the exiled groups` leaders in Damascus.

Palestinian President Mahmoud Abbas and Israeli Prime Minister Ariel Sharon declared a truce in February, ending more than four years of violence. But sporadic violence has threatened the ceasefire.

"We are worried about the calm (truce) ... that it might cease due to continued Israeli violations and assassination attempts," said Farouk Kaddoumi, a leader of Abbas` ruling faction that is committed to a two-state solution.

"Hopes hinged on this calm and on the understandings reached (with Israel) in Sharm el-Sheikh are now meagre after the experience we went through," he told reporters after meeting Hamas politburo chief Khaled Meshaal and an Islamic Jihad leader, Ramadan Shalah.

Palestinian militants launched mortar and rocket strikes on Jewish settlements on Wednesday after Israeli forces killed a Palestinian militant and shot another as he fired mortars at the Gush Katif settlement bloc, injuring one Israeli.

On Saturday, the Palestinian Authority said militant groups had agreed to halt the attacks on Jewish settlements.

Meshaal did not comment on that agreement.

Palestinian President Mahmoud Abbas needs the truce to hold so he can persuade Israel to resume talks over a U.S.-backed "road map" peace plan that calls for Palestinian statehood in the West Bank and Gaza strip.

Israeli Defence Minister Shaul Mofaz had threatened to use "all necessary means" to halt attacks on settlements that Israel is to remove under a planned Gaza pullout this August.