An informal ceasefire was tested Monday, when a 10-year-old Palestinian girl was fatally shot in the head at a United Nations school in Gaza's Rafah refugee camp.

Norhan Deeb was hit by Israeli tank fire while standing in the schoolyard, Palestinian officials say.

But a military spokeswoman said no Israeli forces were involved in any shooting in the area.

UN officials would only confirm the gunshot came from the direction of nearby Israeli military positions.

In Jerusalem, CTV's Middle East bureau chief Janis Mackey Frayer reported that while hundreds of children have been killed on both sides of this conflict, rarely does the Israeli army investigate.

"This time, it will work with Palestinian forces to find out what went so wrong," she reported.

Palestinian Prime Minister Ahmed Qureia condemned the attack and asked for the support of the international community.

"Unfortunately this is a crime, it is very bad, it is a bad message. We appeal to whole world to keep this (peace) process. At least the good intentions that have been shown from our side, and the procedures that we have taken we hope that it will be respected," said Qureia in Gaza.

The militant group Hamas retaliated by firing five mortar rounds at Jewish neighbourhoods. No one was injured, but the action threatens to kill a de facto truce between Israel and the Palestinians.

In another shooting incident on Sunday, a 65-year-old man was killed by Israeli troops after entering an unauthorized area near an army post.

Meanwhile, Israeli Prime Minister Ariel Sharon is facing tough opposition from Jewish settlers who don't want to withdraw from Palestinian territories.

For a second day Monday, Jewish settlers protested a plan by Sharon to withdraw from the Gaza Strip and parts of the West Bank. Sunday's rally drew a record 130,000 people.

"Ariel Sharon, you have no mandate to expel Jews,'' Effie Eitam, a pro-settler lawmaker, told the crowd.

Jewish settlers are demanding a referendum on the plan, but they are unlikely to sway Sharon, who has stepped up contact with the Palestinians. He is due to meet his Palestinian counterpart, Mahmoud Abbas, in February. The most likely date emerging for the summit is Feb. 8.

Later Monday, officials from both sides are scheduled to meet to discuss the handover of security control of West Bank towns to the Palestinians.

Palestinian police commanders are expected to take control of the four West Bank towns as early as Wednesday. The cities include Ramallah, Qalqiliya, Tulkarem and Jericho.

If the security plan holds, Israel says it will move its troops back to positions held before the uprising began in 2000.

It is just the beginning of a plan that would see 8,500 Jewish settlers evacuated from 21 Gaza settlements and four West Bank settlements by summer.

Meanwhile, Israeli officials are meeting to discuss a key Palestinian demand -- the release of Palestinian prisoners.

Abbas wants about 7,000 Palestinians held by Israel freed.

Israeli Defence Minister Shaul Mofaz on Sunday left open the possibility of a prisoner release in the future.

With files from CTV's Janis Mackey Frayer and The Associated Press