Israel preparing extensive Gaza operation: PM

"The army is preparing for an even more extensive operation in the Gaza Strip," the prime minister was quoted by the source as telling parliament's defence and foreign affairs committee.

"The government intends to reach a decision on the exact pattern of the operation in the coming days," Olmert was reported to have said.

At least 260 Palestinians, many of them civilians, have been killed since current operations began late last June.

A government spokeswoman later tried to downplay Olmert's comments, insisting that Israel would continue along its current tack and that no significant tactical shift was afoot.

"Israel is determined to fight terror, not differently but continuously," spokeswoman Miri Eisen, who was inside the committee meeting while Olmert spoke, told AFP. "We won't change our mode of operation in the Gaza Strip and we will not go back to Gaza.

We intend to continue our operation there and carry out pinpoint operations."

The prime minister reiterated insistence from top Israeli officials that the government had no intention of keeping troops in the Palestinian territory permanently after last year's historic withdrawal.

"We will operate in the Gaza Strip but we do not intend to stay there permanently," the committee member quoted Olmert as saying.

Officials have repeatedly warned that Israel will intensify its four-month-old offensive, launched in late June after Gaza-based militants seized an Israeli soldier and killed two others in a cross-border raid.