JERUSALEM — Israel’s Supreme Court yesterday refused to ban the army’s controversial policy of targeted killings against suspected militants, a decision slammed by Palestinians and liberal Israeli politicians.

In the eagerly-awaited ruling that marked the court’s first word on whether the practice was legal, the judges in the country’s highest court said the legality of the killings should be determined on a case-by-case basis.

“We cannot determine in advance that all targeted killings are contrary to international law. At the same time, it is not possible that all such liquidations are in line with international law,” according to the ruling as quoted by Israeli media. “The legality of all targeted killings must be examined on a case by case basis,” it said.

But the court left it up to the army to determine such legality, while urging it to show caution so as not to hit innocent bystanders while carrying out the strikes, army radio reported.

“Innocent civilians should not be targeted,” it said. “Intelligence on the (targeted) person’s identity must be carefully verified.” The court also left open the possibility that innocent bystanders hit during the strikes could file for damages.

“There is room to envision damages if innocent civilians are hit,” it said.

The justices said it was legal to target “a terrorist firing at soldiers or at civilians from a balcony, even if that puts passers-by in danger,” but forbade air attacks on a house with a militant inside, as the strike risked the lives of passers-by and the house’s residents.

The judges cited a July 2002 incident in which an Israeli plane dropped a one ton bomb on a house of Hamas’s military chief, killing him, his eight children, his wife and five neighbors.

Since the start of the second Palestinian uprising in September 2000, 339 Palestinians have been slain in the so-called “targeted killings,” among them 210 suspected militants and 129 bystanders, according to the B’Tselem human rights group.

Thursday’s ruling was slammed by the Palestinians and liberal Israeli politicians alike.

“The political assassinations are a war crime and we reject them and condemn them,” chief Palestinian negotiator Saeb Erakat told AFP. “It is not lawful for the Israeli government and the high court of Israel to make such a decision because it is an occupation authority.”