A day after a senior Israeli officer, two Lebanese soldiers and a Lebanese journalist were killed in a rare skirmish that raised fears of wider conflict, Israel's military appeared keen to show it would not be deterred from activity in the area.

There was no repeat of the clashes when the Israeli Army moved a crane back into the tense frontier zone to complete a tree-pruning mission that had drawn Lebanese Army fire.

Hezbollah, which stayed out of the fighting, vowed to "cut off the hand" of Israel if it attacked the army again. But its leader doubted the incident would spark a war.

In a diplomatic boost for Israel, the UN peacekeeping force in southern Lebanon (UNIFIL) said Israeli soldiers were inside Israeli territory when the border clashes erupted. "UNIFIL established ... that the trees being cut by the Israeli Army are located south of the Blue Line on the Israeli side," said UNIFIL military spokesman Lt. Col. Naresh Bhatt, referring to a border line drawn by the United Nations after Israeli troops withdrew from southern Lebanon in 2000.

Tuesday's violence began after Israel soldiers used a crane to reach over a frontier fence to trim a tree whose branches, the Israeli military said, were tripping the fence's electronic anti-infiltration devices. It said its soldiers had stayed within Israel and the tree was south of the Blue Line.

Lebanese Information Minister Tareq Mitri acknowledged that the area was south of the line, but said it was still Lebanese territory. Israel and Lebanon dispute parts of the Blue Line.

A Lebanese Army official said the military had had prior notice of Israel's planned activity but it had been agreed on condition that it took place under UNIFIL's supervision, adding that the Israelis had gone ahead without this.

The UNIFIL statement did not say whether the Israeli Army had coordinated with the peacekeepers.