An official release here quoted Mr Sharon saying at beginning of a cabinet meeting that ''This was a successful and important operation. Its purpose was to ensure the security of Israeli citizens''.

In response, senior Hamas leader Abdel Aziz Rantisi, who survived an Israeli assassination attempt two weeks ago prompting the recent flare up of violence in the region, warned that the killing of Kawasme ''would not go unpunished'', Israel Radio reported.

Abdullah Kawasme, the head of Hamas' military wing in the West Bank city of Hebron, was killed last night in Hebron during, what the Israeli security forces have termed, 'an attempt to arrest him'.

Israel claims that Kawasme drew a gun when a special police unit tried to arrest him, but Palestinians have criticized the attack as a continuation of Israel's targeted killing policy.

Palestinian sources are reported to have said that three civilian cars arrived in one of Hebron's central streets shortly after 9 p.m., five policemen jumped out of each car and immediately opened fire at Kawasme, who was standing at the entrance to a mosque.

Israel believes Kawasme to be behind the terror attacks in Haifa on March 5, the Jerusalem suicide bus bombings on Jaffa Street on June 11, and at French Hill on May 18, in which over 40 people killed.

Israeli troops have cordoned off the area where the shooting took place and today morning, imposed a curfew on all parts of the city.

Sharon also asserted that Israel would continue with these kinds of operations, as long as the Palestinians do not assume responsibility for security in parts of the West Bank and Gaza.

''We have always maintained that if they assume responsibility and take serious measures against terror organizations they will be in charge. But if they don't, we will act to safeguard Israeli security'', he said.

Meanwhile, Palestinian Authority minister Yasser Abed Rabbo condemned the operation saying that the killing of Kawasme, ''is another proof that the Israelis are... continuing the assassinations.'' Blaming Israel for trying to derail the newly generated momentum in peace talks after US mediation, Rabbo said, ''These operations are meant to obstruct any success of the dialogue to reach a truce (with militants)''.

Voicing similar sentiments, the Palestinian minister in charge of negotiating a truce with Hamas, Ziad Abu Amr said, ''Israel aims to sabotage the possibility of reaching a common Palestinian understanding among the Palestinian factions.''

The Israeli Prime Minister had told US Secretary State Colin Powell at their meeting on Friday that Israel would continue to act against ''ticking bombs'' in the Palestinian territories, despite granting Palestinian Prime Minister Mahmoud Abbas a period of grace in which to negotiate a truce with militant groups.