The Palestinian Authority is trying to rein in Hamas
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The Palestinian ruling party, Fatah, and militant group Hamas have agreed to end several days of fighting between their factions in northern Gaza.
Leaders of the two organisations announced the accord at a late-night news conference in Gaza City.
Two people were killed and several more were injured during gun battles between militants from both sides.
The clashes occurred when Palestinian Authority forces moved in after Hamas launched rocket attacks on Israel.
"The movements have agreed to stop all clashes and violence and end all armed presence and all issues that may lead to tension between the two sides," said senior Fatah leader and Palestinian cabinet minister Sufian Abu Zaida.
Local Hamas leader Mizar Rayyan added: "We agreed to withdraw all armed forces from the streets of northern Gaza... Nothing is better than our unity against our enemy."
Rocket attacks
Correspondents say the cause of the tension is the Palestinian Authority's efforts to try to shore up a ceasefire that it has agreed with Israel.
Hamas has launched more than 100 rocket attacks in and around Gaza in recent days in response to what it calls Israeli aggression.
Israel has deployed thousands of troops on Gaza's border and threatened to move in if Hamas launches any more attacks.
Hamas has said it is still committed to an unofficial ceasefire with Israel but said it retained a right to "resistance and self-defence".
The Palestinian Authority is under pressure to rein in the militants at a time of crucial negotiations with Israel over its planned disengagement from Gaza next month.