GAZA, July 25: An Israeli helicopter fired missiles at the home of an alleged militant in Gaza on Sunday, wounding at least four people and adding to tension in the territory at the heart of a Palestinian leadership crisis.

After more than a week of unprecedented Palestinian turmoil, mediators tried to mend fences between veteran President Yasser Arafat and Prime Minister Ahmed Qurie, who resigned amid the chaos and calls for reforms to a jumble of security forces.

A helicopter fired at least two missiles into a building in Gaza City's Zeitoun neighbourhood that residents said was the home of a Hamas militant, which has sworn to destroy the Jewish state.

The apparent target, Abu Malik Jindiah, escaped unhurt. But four bystanders were wounded, medics said. The explosions tore apart the building and sent up a column of thick, black smoke.

Israel's army made no immediate comment, but an Israeli security source said: "They were looking for Hamas activists." Israeli helicopters have often targeted Palestinian militants during nearly four years of conflict.

In addition to the regular Israeli raids, Gaza has been touched by unprecedented internal unrest over the past week that has stirred fears of Palestinian civil war.

A power struggle, triggered by an Israeli plan to abandon occupied Gaza next year, pits Arafat's old guard against younger members of his Fatah movement demanding the removal of officials seen as corrupt and changes in the security forces.

Prime Minister Qurie tendered his resignation over the crisis and though Arafat refused to accept it, the moderate premier has made clear he will not withdraw it unless the wily former guerrilla leader makes real changes.

An Arafat aide said that a mediation team had been set up to negotiate between the president and prime minister and differences could be resolved at a Tuesday cabinet meeting. -Reuters