"We believe that one British national and another foreign national has been kidnapped," Ross Allen, a spokesman for the British consulate in east Jerusalem told AFP.

"We are working with the Palestinian Authority. We have consulate staff in Gaza liaising with Palestinian officials."

The Briton's identity was not immediately revealed although it is believed that he was working on a water treatment project in the territory.

A report on the Arab satelitte channel Al-Arabiya said that the second kidnap victim was an Austrian although there was no immediate confirmation from Austrian diplomats.