Israeli forces shot dead a man and wounded another in the Gaza Strip near the border with the Jewish state on Friday, a medical source in the Palestinian enclave said.

Bilal Samir Oweida, a 20-year-old civilian, died after being "shot in the chest by Israeli soldiers" east of Jabaliya, in northern Gaza, said Ashraf al-Qudra, a spokesman for the Hamas-run health ministry.

Two Palestinian members of Islamic Jihad were killed in an Israeli air raid in the Gaza Strip overnight, witnesses and medical sources said Wednesday.

The two victims, Ahmad al Zaaneen, 21, and Mohammed al Zaaneen, 23, died when the car they were travelling in was hit near Beit Hanoun in the northern Gaza Strip, the sources said.

Two Palestinians were hurt, one critically, in an Israeli air strike on Gaza City on Sunday, which the military said had targeted a senior Islamic Jihad militant.

The strike, the third in 12 hours, came a day after militants fired another rocket at southern Israel, prompting a sharp warning from Israeli Prime Minister Benjamin Netanyahu.

The Israeli army fired live rounds and tear gas at protesters near the border fence in the Gaza Strip on Friday, wounding two Palestinians, medics and an AFP correspondent said.

Troops fired at some 300 demonstrators who were protesting against Israel's destruction of farmland for its 300-meter (yard) buffer zone, the correspondent said.

Gaza militants fired two projectiles which struck an area close to the ranch where former Israeli prime minister Ariel Sharon was laid to rest on Monday, a military spokeswoman said.

"Two projectiles landed in an open area in the Shaar HaNegev region," the spokeswoman told Agence France Presse, referring to the area around the northern border with Gaza, without specifying exactly where they struck.

The wife of a Palestinian jailed in Israel gave birth in the Gaza Strip after being impregnated by sperm smuggled out of an Israeli prison, a prisoner association said on Friday.

While such births have been declared among West Bank wives of prisoners in Israel, this was the first such occasion in the besieged Gaza Strip, director of the Waed Gaza prisoner association Saber Abu Karsh told Agence France Presse.

An Islamic Jihad militant was killed near Gaza City on Wednesday in what medics and his family said was an Israeli drone strike.

But the Israeli military denied carrying out any strike on Gaza, with a spokeswoman saying she was unaware of any such incidents in the area.

Hamas prime minister Ismail Haniya reached out to West Bank rivals Fatah on Monday, saying its members would be allowed back into Gaza, in efforts to promote Palestinian reconciliation.

"The (Hamas) government will allow all Fatah members who are from Gaza and who left the Strip (in 2007) to return, without any preconditions," apart from those accused of killing Hamas members during intense factional fighting that year, Haniya said.

A Palestinian youth shot by Israeli soldiers in the Gaza Strip has died of his wounds, a Gaza medical official said Friday.

Adnan Abu Khater, aged 16, was shot Thursday near the border fence in the northern Gaza Strip, sources on both sides said.

Two Palestinians in the Gaza Strip were wounded Sunday by Israeli tank fire, medical sources said, less than a week after cross-border violence peaked with deaths on both sides.

Ashraf al-Qudra, a spokesman for the emergency services in the Islamist Hamas-run enclave, told Agence France Presse two men were in "moderate condition" after being hit by tank fire "in an open area" east of Al-Maghazi refugee camp in central Gaza.