"We affirm our determination to continue the intifada until occupation ends and we demand that the Palestinian Authority and new government resist pressure from the Americans and the Zionists aimed at ending our right to resist," Hamas said in a statement.

"Resistance is the only language that the enemy understands and the only means to free Palestine from occupation," said a similar statement from Al-Aqsa, a violent offshoot of Palestinian leader Yasser Arafat's Fatah group.

Both groups have been responsible for numerous attacks on Israeli targets and Israel has been actively trying to kill Hamas leaders since it declared "total war" on the organisation.

In the West Bank town of Nablus, meanwhile, some 5,000 Palestinians hit the streets in a new rally to mark the anniversary, an AFP reporter said.

The demonstrators, many carrying Palestinian flags and those of Hamas and its smaller rival Islamic Jihad, marched from al-Najah University to the town centre, chanting slogans of defiance.

"Get rid of the occupation not our leaders," was the common refrain, a reference to Israel's threat to exile Palestinian leader Yasser Arafat.

They set fire to a cardboard replica of an aircraft with an Israeli flag.

Israeli soldiers, who were on duty in the town, did not intervene and the rally passed off without incident.

The serious violence of the intifada started on September 29, 2000 when bloody clashes broke out at the Al-Aqsa mosque compound in annexed east Jerusalem, Islam's third holiest site.

But many Palestinians say it was sparked when then Israeli defence minister Ariel Sharon, now prime minister, paid a provocative visit to the compound the previous day.

At least 3,497 people have been killed during the uprising, including 2,612 Palestinians and 822 Israelis.

Reuters adds: Leaders of Palestinian President Yasser Arafat's Fatah movement on Saturday approved a new cabinet in a step toward ending political turmoil that has helped stall a US-backed plan for peace with Israel.

The cabinet list was not finalized, however, as Prime Minister-designate Ahmed Qurie and the Palestine Liberation Organisation's executive committee, led by Arafat, met later on Saturday without coming to any conclusions.

The PLO executive committee was due to meet again to discuss the list before submitting it to parliament for final approval, expected in the coming week.