There were no reported Israeli casualties but the blast, said to be the most powerful bomb ever used by the Palestinians against Israel, wrecked the border terminal, tore a big hole in the border wall and shattered windows in Israeli buildings, Debkafile said.

A second bomb-laden vehicle heading out of northern Gaza was struck by the Israeli air force.

In other violence, five Palestinians were killed in southern Gaza fighting Friday and four died during an attack on an Israeli patrol at Kissufim, two of whom were killed while laying bomb charges.

Meanwhile, hamas announced truce talks in Egypt for an informal ceasefire with Israel in the Gaza Strip had ended without results. The Hamas negotiators have returned to Damascus, a spokesman said.