Also, a spokesman for the outgoing Hamas-led administration said the group is prepared to back peace efforts with Israel as part of the new coalition government being formed by the Palestinians.

The men ordered released will remain behind bars for at least two more days pending an appeal by prosecutors. The court is scheduled to issue a final ruling on Thursday.

The Israeli army arrested more than two dozen Hamas lawmakers since June after militants in Gaza linked to the group attacked a military post, capturing an Israeli soldier. The military court said the lawmakers should be freed on bail while their trials continue.

Palestinian leaders have said the detentions were illegal and demanded the freedom of the Hamas politicians.

Despite the apparent softening of Hamas' violently anti-Israel position, fighting early Tuesday between Israeli troops and Hamas militants in the Gaza Strip raised doubts about a possible rapprochement.

Hamas gunmen, along with members of another militant group, battled troops operating near the border with Israel, killing one soldier, the army said. Israel has been carrying out operations inside Gaza since Hamas-linked militants tunneled into Israel in late June and captured an Israeli soldier.