Israeli troops have clashed with Palestinian militants on the edge of Gaza City on the third night of Israel’s ground assault on Gaza.

The Hamas and Islamic Jihad groups say fighters engaged Israeli soldiers with machine guns and rocket fire.

Three Israeli soldiers were also killed by “friendly fire” in northern Gaza.

Some 500 Palestinians are thought to have been killed and 2,500 wounded in the 10 days since Israel moved to end rocket attacks from within Gaza.

Palestinian medical officials say at least 90 people have died since the ground assault began while Israel has lost four soldiers and four civilians over the 10 days.

Aid agencies in Gaza speak of appalling conditions for treating casualties of the continuing Israeli bombardments.

Rejecting international appeals for a ceasefire, Israeli Defence Minister Ehud Barak said the operation would continue until it met its objective.

Foreign diplomatic efforts to resolve the crisis have borne little fruit so far.

Single shell

An Israeli army spokesman said three soldiers from the elite Golani Brigade had been killed accidentally by a single tank shell, with a further three severely wounded and 20 suffering lighter injuries.

The shell had hit a “structure” where the soldiers were located, he said

At nightfall on Monday, Israeli troops were reported to be battling Palestinian militants on the outskirts of the Shujaiya district of Gaza City.

Hamas and Islamic Jihad said their fighters had engaged Israeli soldiers with machine-guns and rockets. Residents reported hearing loud explosions and heavy gunfire.

Israel’s Haaretz newspaper, quoting Israeli army sources, reports that says Hamas lobbed mortars at the soldiers.

Artillery and helicopter gunships were reportedly brought in to drive back the Palestinian fighters.

Israeli tanks were also reportedly moving towards the Bureij refugee camp in central Gaza and Beit Hanoun and the Jabaliya refugee camp saw clashes on Monday.

Information about what is happening inside Gaza is limited as Israel has barred foreign reporters from entering.

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‘Serious hunger’

Living conditions in Gaza are reported to be deteriorating sharply, with supplies of fuel, food, water and wheat running desperately low.

Norwegian doctor Mads Gilbert, one of two foreign doctors working at Gaza’s biggest hospital, al-Shifa, said operating rooms were full and people were dying because of a lack of supplies.

Israel says it is not targeting civilians but Dr Gilbert said he had only seen two fighters among hundreds of casualties.

The UN says a million people in the territory are without electricity and many are facing “serious hunger” within days.

Dominic Nutt, of the aid agency Save The Children, told the BBC that workers in the territory were reporting rapidly deteriorating conditions:

“They don’t have any water most of the day, there is no electricity, they are freezing cold, the windows have to be left open to stop them smashing when the bombs fall.

“Children are at risk from hypothermia, they are malnourished, there is not enough food, the situation is getting desperate.”

Thousands of Gazans are reported to have fled their homes, despite the dangers of moving around outdoors in the territory.

Israel says it has allowed a convoy of 80 lorries carrying food and medicines through Gaza’s southern border with Egypt.

Peace bid

French President Nicolas Sarkozy is to travel to Damascus on Tuesday along with an EU delegation in a bid to persuade Syria to influence Hamas leaders to accept his plan for a ceasefire.

He held talks with Israeli and Palestinian leaders in the region on Monday.

Accusing Hamas of acting in an “irresponsible and unforgivable manner” by firi

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