Israel says soldier died of friendly fire

JERUSALEM, July 9 (Reuters) The sole Israeli soldier to die in Israel's latest Gaza offensive was killed by friendly fire and not Palestinian gunmen, the Israeli army today said.

Staff Sergeant Yehuda Bassel ''was killed by Israeli army fire'' in northern Gaza on July 6, an army statement said.

Israel launched an attack into Gaza on June 28, days after the abduction of an Israeli soldier in a Palestinian cross-border raid in which two other soldiers and two Palestinian gunmen were killed.

Bassel was killed on a day of heavy fighting in northern Gaza, during a raid by troops to quell Palestinian rocket fire and destroy tunnels used to infiltrate Israel.

It was a day that saw the highest number of Palestinian casualties in fighting with Israel in nearly two years, with 18 gunmen killed in air strikes and ground combat.

The army statement said that Bassel was shot ''while the force was operating under heavy fire in a difficult and complex terrain''.

Earlier reports had said Bassel was targetted by a Palestinian sniper.

The Web site of the Maariv daily newspaper said a later investigation found Israeli forces had shot Bassel as he took cover in a building while they aimed fire at Palestinian gunmen.

REUTERS SY PM2227