Israeli armour and troops have withdrawn from the refugee camp, but remain around the town's perimeters in what was Palestinian-controlled territory.

Palestinians say their presence means there has been no proper withdrawal. The Israelis have positioned their troops there because they say the operation is on-going.

UN special envoy Terje Roed-Larsen described the situation in the town's refugee camp - largely reduced to rubble in the operation - as "horrific beyond belief".

Palestinians say a massacre took place and allege that the Israeli army tried to bury the dead to conceal evidence.

Israel rejects this and estimates 70 Palestinian fighters were killed. Twenty-three Israeli soldiers died in the fighting.