Rival Palestinian forces were involved in a stand-off at the Gaza border today after customs police caught a Hamas official trying to enter from Egypt with €639,000.
The money was hidden in his clothing and a bag. He was named as Hamas spokesman Sami Abu Zuhri.
Sami Abu Zuhri
Around 100 Hamas gunmen raced to the Rafah border crossing, which is guarded by Palestinian President Mahmoud Abbas's presidential guard, raising fears of fresh fighting.
Witnesses said presidential guard reinforcements were also sent to the area.
Mr Abu Zuhri, initially refused to leave the border terminal without the money, which was confiscated by Palestinian customs agents. But witnesses said he later left and that the gunmen withdrew.
Hamas lawmaker Mushir al-Masri said Abu Zuhri was carrying "donations from Arab nations to the Palestinian government and it was meant to pay for prisoners in Israeli jails."
Mr Abu Zuhri, who is the official spokesman of the Hamas movement rather than the Hamas-led government, told reporters he left after an agreement was reached for the money to "soon be released".
Palestinian police fought gunbattles in Gaza City earlier today with a new Hamas-led security force set up by the government in defiance of Mr Abbas.
At least four people were wounded in the first fighting since Hamas deployed the force on Wednesday.
Facing a US-led funding and banking blockade, the Hamas-led Palestinian Authority is broke and has been unable to pay salaries to 165,000 employees.