In a statement on Oct. 4, the Interior Ministry said security authorities have dismantled the Israeli spy network that had targeted the Hamas regime, Middle East Newsline reported. The ministry said the effort was aided by Palestinians who volunteered information on their recruiters and methods.

"The information provided by these repentant people led to phone calls from important handlers who were arrested in the end," Lafi said.

The arrests were announced in September 2010 amid increasing criticism of Hamas's counter-espionage campaign. Palestinian sources said hundreds of people were arrested and interrogated, often based on tips from rival neighbors or family members.

Officials said Israel rebuilt its spy network in the Gaza Strip following the Hamas takeover in 2007. They said the network was recruited and trained to communicate with Israeli espionage officers through encrypted cellular phones and the Internet.

"Internal Security has learned the concept of the infrastructure of the Zionist intelligence and how it contacts its operatives," Lafi said.

The Palestinian agents were said to have been assigned such tasks as tracking Hamas weapons smuggling and military exercises. Officials said the Israel Security Agency also ordered some of the agents to identify the whereabouts of Sgt. Gilad Shalit, held by Hamas since 2006.

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