The report quoted an Israeli army spokesman as saying that two were physically injured and four were treated of panic and shock. They were taken to the hospital for medical treatment, adding that the rockets also hit several houses in the town.

A Palestinian militant group called the Brigades of al-Mujahidin, one the armed wings loyal to Fatah movement, claimed responsibility for launching two homemade rockets from northern Gaza Strip at the Israeli town.

The Popular Front for the Liberation of Palestine (PFLP) has also claimed responsibility for attacking the town of Sderot with one rocket.

The Israeli television channel II reported that the Israeli government is studying all possible options, including a large-scale military operations on Gaza militant groups.

Early this month, violence between Israel and Gaza militant groups broke out in spite of a six-month Egyptian-brokered truce which came into effect in June 19 between the two sides. The Gaza Strip is ruled by Islamic Hamas movement.

In response to homemade rockets attacks, the Israeli army killed 15 Palestinians, most of them Hamas militants, and shut down all Gaza Strip commercial crossing points on the borders with Israel.

Channel II reported on Sunday night that the government of Israeli Prime Minister Ehud Olmert would decide on Wednesday what would be the fate of the fragile truce.

Egyptian sources had earlier revealed that Egypt informed Israel that Hamas movement is still committed to the truce and wish to renew it with Israel after Israel threatened to target senior Hamas leaders in Gaza if rocket attacks go on.