Israeli troops have pulled out of the West Bank city of Jenin, lifting a blockade imposed in August last year.
Troops dismantled roadblocks and tanks pulled back, opening up routes between the city's eight entrances and surrounding villages, residents said.
The army said the move followed a reassessment of the security situation.
Israeli forces sealed off the city in August after a suicide bombing in Jerusalem in which 20 people died.
Israel is required to ease restrictions on Palestinians under the terms of the US-backed roadmap peace plan for the Middle East.
Israel is also supposed to freeze settlement expansion in the Palestinian territories and dismantle unauthorised outposts, while the Palestinians are required to disband militant factions.
Stronghold
The BBC's Barbara Plett in Jerusalem says Jenin has been surrounded by Israeli forces for the better part of the last three years of conflict.
She describes the city as a stronghold of Palestinian militias which have sent suicide bombers to Israel.
Jenin's Palestinian governor, Ramadan al-Batta, said the Israeli army's decision to pull out was made without any security co-ordination with the local authorities.
Part of the camp was reduced to rubble in 2002
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He expressed concern that this reflected a new Israeli unilateralism that would leave Palestinians marginalised.
Last month, Israeli Prime Minister Ariel Sharon said that if Palestinians did not end violence and start implementing the roadmap within a few months, Israel would pursue a policy of unilateral separation.
In 2002, Jenin was the site of a massive Israeli military operation following a suicide attack on the town of Netanya which killed 28 Israelis celebrating Passover.
Soldiers fought pitched battles with militants and parts of the sprawling Jenin refugee camp were reduced to rubble. The final known death toll was 52 Palestinian militants and civilians and 23 Israeli soldiers.