Ali Sweti, 40, a member of Hamas's Izz el-Deen Al-Qassam brigades, was suspected of involvement in six anti-Israeli attacks, including a shooting that killed an Israeli paramilitary border policeman in 2004.

The security officials said Sweti did not heed Israeli soldiers' calls to surrender after they surrounded his relative's house in Beit Awwa, near the town of Hebron.

A gun battle ensued and an Israeli bulldozer demolished part of the dwelling. In a statement, the Israeli military characterized the raid as an "arrest operation" and said Sweti shot first after refusing to give up.

"The terrorist continued to fire at the force, and was ultimately killed," a military statement said.

Relatives said Sweti's body was found under the rubble along with his rifle.

The Palestinian Authority has condemned Israeli raids in the West Bank, saying such operations undermine its attempts to police the area effectively.

Hamas opposes Middle East peace efforts promoted by international mediators. They refuse to deal with Hamas unless it recognizes Israel, renounces violence and accepts existing interim Israeli-Palestinian peace deals.

In 2007, Hamas violently wrested control of the Gaza Strip from Palestinian President Mahmoud Abbas's Fatah movement, which holds sway in the West Bank.