Witnesses say a top Palestinian bombmaker for the militant Islamic Jihad group was killed late Sunday in an Israeli missile strike in Gaza City.

A second missile struck another car nearby, killing the head of a Palestinian squad linked to rocket attacks in southern Israel.

Friday, Islamic Jihad claimed responsibility for firing rockets that wounded an Israeli infant and two adults in southern Israel.

Separately, Israeli helicopters fired missiles early Sunday at a building occupied by militants from the al-Aqsa Martyrs Brigades. Medics said three members of the group were killed.

In other developments, Israel has agreed to release $54 million of Palestinian tax revenues it withheld after the militant group Hamas won Palestinian legislative elections last month.

Israel says the monthly transfers will be suspended if a Hamas-led government is formed, as expected.

Some information for this report was provided by AFP, AP and Reuters.