Gun battle erupts in Arafat offices

A Palestinian television reporter on the scene in Ramallah said a number of Mr Arafat's bodyguards had been wounded.

The BBC's Barbara Plett, reporting from Ramallah, says there was heavy machine-gun fire and a loud explosion, but the shooting later subsided.

Israeli troops are reported to have entered the Ramallah governor's office next to Mr Arafat's office.

The Israeli army accused Mr Arafat's bodyguards of having opened fire from the dining room on the ground floor, then from one of Mr Arafat's rooms.

But a Palestinian official said Israeli soldiers had broken down the dining room door, triggering the gun battle.

The compound is surrounded by tanks, and supplies of water and electricity were for a time cut off.

Israeli Foreign Minister Shimon Peres insisted that the Israeli operation was not directed at Mr Arafat himself.

Jordan summoned the Israeli ambassador to its foreign ministry on Sunday to protest strongly over Israel's assault.

The Palestinian leader earlier issued a defiant statement, telling the American Fox television network that he would never surrender.

"They (the Israelis) have declared it many times: 'We want Arafat dead or a prisoner, or to kick him outside of Palestine.' And I have told them I have one choice: to be one of the Palestinian martyrs." Mr Arafat said in a telephone interview.

Ambulance drivers were reported to be negotiating with Israeli troops over the removal of the casualties.