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Israel and the Palestinians Sunday appeared to be edging toward an agreement that would remove Israeli troops from the northern Gaza Strip, the scene of repeated confrontations, and replace them with Palestinian security forces.

Visiting United States and Egyptian delegations were attempting to broker the deal with the larger goal of moving ahead on an international peace plan. However, violence persisted today, with Israeli troops shooting dead one Palestinian militant in northern Gaza, and Palestinians firing several rockets at Israeli towns.

"I'm taking this as a serious proposal from the United States," said Ghassan Khatib, a Palestinian cabinet minister, referring to the Gaza security plan. "We believe the American administration can deliver when it wants to."

On June 4, under pressure from the United States, the Israelis and Palestinians held a Mideast summit, their most ambitious peace effort since the current period of attacks and counterattacks began in September 2000.

But last week brought a surge of violence that left more than 50 people dead, and was accompanied by angry promises from both sides of still greater violence to come. In the past two days, pressure from the United States and others has induced the warring parties to re-start negotiations.

Earlier today, the Israeli and Palestinian cabinets held separate sessions in which they endorsed the basic principle of having the Palestinians police part of the Gaza Strip, while setting several conditions. Israeli media reports said the Palestinian security chief, Muhammad Dahlan, met for the second successive night with senior Israeli security officials on details of the plan.

Prime Minister Ariel Sharon of Israel said his government would continue to pursue members of the Islamic group Hamas and other Palestinian militants if they were planning to strike Israel. The United States backed this approach, Mr. Sharon said.

President Bush, speaking from Kennebunkport, Maine, said, "The free world and those who love freedom and peace must deal harshly with Hamas and the killers."

Hamas, which has always opposed peace talks with Israel, has rejected the Mideast peace plan.

The group carried out a suicide bombing Wednesday that killed 17 people on a Jerusalem bus, including Anna Orgal, 55, identified as the cousin of the United States ambassador to Israel, Daniel C. Kurtzer.

Hamas is facing pressure to suspend attacks, and group leaders today joined other Palestinian factions in discussions with an Egyptian delegation seeking to negotiate a truce.

Mr. Sharon said that if the Palestinian leadership could persuade Hamas and other militant groups to agree to a truce, it would be welcomed.

"We will hold our fire, except in cases of self-defense against ticking bombs," Mr. Sharon was quoted as saying by a cabinet official.

The Palestinians said they were prepared to take over security in northern Gaza, and want the Israeli forces to leave the coastal areas of the strip, as well as the West Bank town of Bethlehem. They also want United States guarantees that Israel will not reoccupy areas it vacates, and that it will stop the targeted killings of militants.

"We don't want a random Israeli withdrawal," said Nabil Amr, the Palestinian information minister. "It should be based on a political vision."

The head of the United States delegation, John S. Wolf, met Israeli officials today and planned to see Mr. Sharon on Monday. After that, he will see Palestinian leaders. The Palestinian prime minister, Mahmoud Abbas, was expected to travel Monday from his West Bank headquarters in Ramallah to Gaza, to renew the dialogue on a cease-fire.

Before dawn today, Israeli forces entered the northern Gaza town of Beit Hanun, the site of frequent Palsetinian rocket launches at Israel.

The troops came under heavy fire and shot back, the military said. Palestinians said one militant was killed, identifying him as a member of the Al Aksa Martyrs Brigades, a group with ties to the Fatah movement of Palestinian leader Yasir Arafat.

Later in the day, Palestinians fired several rockets from northern and southern Gaza at Israeli towns, but caused no damage or injuries.

The Israeli army also said it had arrested three wanted Palestinian militants in a cave outside the West Bank town of Bethlehem. One of the men, Essa Batat, was the local leader of Islamic Jihadand was linked to attacks that killed six Israelis, according to the army.

In another development, Peace Now, an Israeli group that monitors settlements, said Jewish settlers have established five new outposts in the West Bank over the past week, though the peace plan calls for recently erected settlements to be dismantled.

"The settlers are nervous, and things are much more tense," said Dror Etkes, a Peace Now official. "But it's the same old story. The construction is still going on."

The Israeli military demolished 10 uninhabited settlements last week, and slated five with a small number of residents to be removed. However, the settlers have challenged the army plan in court and no action has been taken.

The army took down one additional outpost today, removing a bus that had been fashioned

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