An Israeli drone strike on the Lebanese port city of Sidon has killed a member of Palestinian fighter group Hamas, a Palestinian official said, AFP reports.

The strike on a flat in a residential area of the city killed the official and his adult son and daughter, the source said speaking on condition of anonymity.

An AFP correspondent saw the fourth-floor flat still on fire after the strike, which caused heavy damage to the apartment block and neighbouring buildings and sparked panic in the densely populated neighbourhood.

Lebanese state media had reported the 3:45am (05:45am PKT) strike on Sidon, saying at least three people were killed.