An Israeli air strike wounded four Palestinian militants in the Gaza Strip, Palestinian medical workers said, but Israel said one of them had been killed.

The Israeli military said the strike targeted militants in the Hamas-controlled territory who were about to fire rockets into southern Israel. It said a gunman from a pro-al Qaeda group was killed.

The four gunmen were members of Islamic Jihad, the militant group said, adding that one was seriously wounded.

The strike came as reports this week suggested Israel and the Islamist group Hamas could be nearing a prisoner swap deal that would secure the release of a captured Israeli soldier.

But Hamas officials said the indirect negotiations have hit a snag and are on hold until the end of the four-day Muslim Eid al-Adha holiday.