Rival Palestinian security forces began withdrawing from parts of Gaza City and freeing hostages under a new ceasefire deal today after a day of gun battles and abductions in which six fighters were killed.
A previous ceasefire between the ruling Hamas faction and once-dominant Fatah broke down within 24 hours. It was unclear whether the new one, brokered by Egyptian mediators, would hold.
Minutes after the deal took effect at 9 pm last night, Gaza residents reported gunfire between rival fighters. At least one Hamas gunman was wounded during the shootout.
Palestinian President Mahmoud Abbas of Fatah plans to issue a decree next week calling for elections, a move which Hamas has described as a "coup", a senior Mr Abbas aide said.
Prime Minister Ismail Haniyeh reiterated the Hamas movement rejected Mr Abbas's election call and accused the United States of spearheading efforts to topple his government. Hamas has said it would boycott any polls.
But both Mr Abbas and Mr Haniyeh urged Palestinian forces to abide by the latest ceasefire deal.
Yesterday's death toll was the highest since internal fighting intensified over the weekend. Four of the six were killed in street battles. The bodies of two of Mr Abbas's security men were found dead hours after their abduction, hospital officials said.
The internal violence, the worst in a decade, has escalated since Abbas first called for new elections on Saturday to try to break a political deadlock with the Hamas government.
Concerned events were spinning out of control, Western and Arab nations had called for a ceasefire. Israeli Prime Minister Ehud Olmert travelled to Jordan for unannounced talks with King Abdullah.