Israel Defense Forces (IDF) pulled out the ground troops from the northern Gaza Strip early Monday morning, completing the first stage of the activity dubbed Operation Hot Winter.
An IDF spokeswoman told Xinhua that counter-terror operations were expected to continue.
Israeli Deputy Prime Minister Haim Ramon told Army Radio that " This operation has run its course. The main goal of the Israeli government ... is to end the firing at targets in the south. There were dozens of deaths among the Hamas terrorists – this is certainly deterrence."
An estimated 30 Palestinians were killed during the operation which began over the weekend and some 90 were arrested, the spokeswoman added.
Mo'aweya Hassanein, chief of emergency and ambulance service in the heath ministry of the deposed Hamas government, said that since last Wednesday, 116 Palestinians were killed and 350 others wounded in the intensive Israeli air and ground raids on Gaza Strip militants and their homes, and against Islamic Hamas movement buildings.
Israeli security officials told Army Radio that the operation was not part of a large-scale campaign which leaders have said may come if rocket fire continues.
Meanwhile, the IDF carried out several air strikes in Gaza overnight Sunday, killing at least five Hamas operatives, Palestinian sources reported.
The army said aircraft targeted weapons storage and manufacturing facilities.
The Israeli army has been carrying out since Saturday a major ground operation into the area, where tanks and bulldozers backed by aircraft have been acting in the area.
Gaza residents said the Israeli army tanks had caused severe destruction in the area on Saturday morning, where dozens of militants were killed as aircrafts targeted them.
On Sunday, Israeli Prime Minister Ehud Olmert vowed that Israel will not stop the military operations against Palestinian militants in Gaza.
"If anyone in Gaza has illusions that extending the range of rocket fire will bring our operations to an end, they are sorely mistaken," Olmert told ministers during the weekly cabinet meeting.
In the wake of the Israeli withdrawal, Hamas called for popular demonstrations in Gaza "to celebrate the defeat of the Israeli occupation army".
Rival Fatah movement demonstrated in Gaza City against the Israeli offensive and the mass killing.
Right after the Israeli army tanks withdrew from eastern Jabalia in northern Gaza Strip, militants launched a Grad missile from Gaza at the costal city of Ashkelon in southern Israel.
(Xinhua News Agency March 3, 2008)