The Israeli died after a rocket damaged a house in the northern Israeli village of Mghar, about 22 km south of the border with Lebanon, the source said.

Another Israeli was seriously wounded when another rocket hit acar near Israel's northern town of Kiryat Shmona, the source added.

A total of 12 Israelis including eight civilians and four soldiers were killed on Thursday, Israel's bloodiest day since the violence between Israel and Lebanon's Hezbollah broke out on July 12 following the abduction of two Israeli soldiers by Hezbollah guerrillas in cross-border attacks.