One Palestinian policeman was killed during the shooting, Bethlehem governor Mohammed al-Madani said. The blaze in the offices of a monastery inside the church compound was quickly put out.

Each side blamed the other for firing the opening shot near the church.

Madani said Israeli soldiers in the municipality building 100 metres to the west and gunners in two tanks to the south were shooting at the church.

Israeli army commandos were spotted on the roof of the church, and helicopters hovered overhead.

A priest inside the church compound said: “The Israeli soldiers carried out an armed attack on the Nativity church. They set fire to the parish building in front of the basilica.—Reuters