Occupied Jerusalem: Israel plans to raze homes and other structures just inside the Gaza Strip to stop Palestinian fighters from using them as cover to build tunnels for attacks and smuggling, Israeli media reported on Friday.

The YNet news website quoted an unnamed senior officer in the army's southern command as saying the aim was to "clean" a 1 km (0.6 mile) wide strip of land.

It was unclear if this meant southern Gaza, where most tunnels have been found, or the entire coastal strip.

Spokeswomen for the army and the Defence Ministry said they had not heard of the plan.

The army has long expressed concern about Palestinian gunmen using tunnels in southern Gaza to smuggle weapons in from Egypt and to also carry out attacks on the Jewish state.

Israel's current month-long military offensive in Gaza was launched after fighters tunnelled under the border fence in the south and killed two Israeli soldiers and captured another.

"Usually the digging is done from a house, a greenhouse or anywhere else that is meant to cover the activity," the officer said.

"Therefore we have decided to conduct a different policy and just shave and attack any structure or shelter that could be used as a cover for an entrance to a tunnel. This way any attempt by a Palestinian to dig a tunnel will be stopped."

Israel's assault in Gaza to recover Corporal Gilad Shalit and end cross-border rocket attacks has been overshadowed by fighting in Lebanon.

Israeli Prime Minister Ehud Olmert said on Wednesday he would impose a 2km-wide no-go zone in southern Lebanon against Hezbollah.

Political sources and Israeli media said the army would enforce the zone with tank fire and air strikes to avoid stationing soldiers on the ground.