Israeli forces withdrew from the northern Gaza Strip town of Beit Hanun on Tuesday, after a six-day incursion to stop rocket attacks that left at least 56 Palestinians dead.
"We withdrew our forces from Beit Hanun after having completed our mission," an Israeli military spokesman said.
Israel launched its latest blitz last Wednesday, claiming Beit Hanun had become a major base for Palestinian fighters launching rockets into its territory. Israeli forces completely occupied the town, trapping residents inside their homes, but Palestinian fighters still managed to launch 36 such rockets into the Jewish state since last Wednesday, lightly wounding three people.
But the Israeli spokesman said that significant numbers of rockets, anti-tank weapons, explosives and other munitions were seized during the operation.
"Nine commandos who were preparing to launch rockets into Israeli territory were attacked by our forces. Dozens of suspects were also arrested for interrogation," the spokesman added.
The latest operation, following four months of Israeli activity in Gaza, where more than 300 Palestinians have been killed since a serviceman was captured in late June, has been condemned by the international community.
Israeli officials, in particular Defence Minister Amir Peretz, had repeatedly said during operation Autumn Clouds that they had no intention of permanently reoccupying the Gaza Strip after having withdrawn their forces last year.
Residents of Beit Hanun reported that Israeli armoured vehicles had withdrawn from the center of the town during the night to its northern outskirts, close to the border between the Gaza Strip and Israel.
"Twenty-four tanks were posted around the hospital. Now I can't see a single one," said Ali Uda, a doctor at a hospital in the center of the town.
During the six-day operation Israeli air strikes and clashes left at least 56 Palestinians and one Israeli soldier dead.
Among the Palestinians killed during the operation have been a four-year-old, a 12-year-old, three teenagers, a 70-year-old and at least 30 militants. More than 200 Palestinians have been wounded.
On Monday, a Palestinian teenage girl blew herself up in an attack against Israeli troops in Beit Hanun, lightly wounding one soldier when she detonated an explosive belt strapped to her chest.
The ultra-radical Islamic Jihad, which has been behind all of the most recent bomb attacks against Israeli targets, immediately claimed the attack in which Massud was killed.
Four Palestinians, including three Hamas militants were killed during clashes with Israeli forces or aerial attacks on Monday, medics said. Another Palestinian succumbed to wounds received earlier.
Israel on Monday came under renewed international criticism for the operation.
The International Committee of the Red Cross (ICRC) expressed concern about the humanitarian situation in Beit Hanun, which has borne the brunt of the assault.
The Finnish presidency of the European Union said it "deplores the growing number of civilian casualties" from the Israeli operation and warned against the "disproportionate use of violence".
In London, British Prime Minister Tony Blair urged Palestinians and Israelis to free prisoners and return to negotiations for a two-state solution, as he called the violence in the Gaza Strip "tragic, terrible".
Urban Caulori, deputy director of the ICRC in Gaza, speaking about Beit Hanun, told AFP: "The situation is serious and we are very concerned, but we have not been able to assess the situation because of the fighting going on."
Palestinian president Mahmud Abbas held crunch talks Monday evening with Ismail Haniya, head of the Hamas-led government, amid reports that their rival factions have reached a deal on a unity cabinet.
But the two failed to reach an agreement and were due to meet again on Tuesday, officials said.