GAZA, Sept 6 (Reuters) - Israeli soldiers operating inside the Gaza Strip killed three Palestinian gunmen on Thursday, medical officials said.

Local residents said a small Israeli commando force crossed into the territory near the Palestinian town of Khan Younis and that gun battles erupted.

Israeli tanks then moved into the area, in the southern part of the Gaza Strip, and the fighting intensified, the residents said.

Two Islamic Jihad gunmen and a Hamas militant were killed in the clashes, ambulance crews and doctors at a local hospital said.

An Israeli army spokeswoman in Tel Aviv said Israeli forces carried out "routine activity" in an area where gunmen have been firing rockets at Israel and digging tunnels near the border fence.

Israel's security cabinet, discussing how to respond to Qassam rockets from Gaza, decided on Wednesday to pursue "pinpointed attacks" against militants, despite calls by right-wingers for a large-scale operation in the Hamas-controlled territory.

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