Israel has pulled its tanks and troops out of the West Bank Palestinian town of Qalqilya despite a Palestinian attack in Jerusalem that left two teenagers dead.
The Israeli forces withdrew a few hundred yards to the edge of Palestinian-controlled territory and into Israel.
Palestinian witnesses said the withdrawal began with six Israeli tanks pulling back from the northern and southern entrances to the town, while tanks in other locations were preparing to leave.
Israel sent forces into parts of six West Bank towns the day after Palestinian militants assassinated Tourism Minister Rehavam Zeevi on October 17. They withdrew from Bethlehem and nearby Beit Jalla a week ago.
The US government has demanded repeatedly that Israel pull its forces out of the towns.
Israeli officials said the pullback from Qalqilya would proceed despite the attack in Jerusalem. A Palestinian gunman opened fire on at a busy intersection, spraying an Israeli bus with automatic rifle fire before two police officers and a civilian shot him dead.
The attack took place at the intersection in front of French Hill, a Jewish neighbourhood built on land Israel captured in the 1967 Middle East war and annexed to Jerusalem. Passengers on the bus included students from an Orthodox Jewish girls school.
Ms Shoshana Ben-Yishai, 16, was on her way home from school when she was shot in the head. She died on her way to a hospital where her mother works as a nurse.
Israel Radio identified the other dead teenager as Menashe Regev, 14, from Jerusalem.
Police identified the attacker as Khatem Shweiki, 24, from the West Bank city of Hebron. Police said he belonged to the militant Islamic Jihad.
PA