General Alon Friedman, one of Israel's senior commanders in the northern region, had earlier said the town, regarded by Israel as one of Hezbollah's key centres, was "in our hands".

But an Israeli military spokesman later said: "I can't say we are in total control. We are operating in the town." 

Hezbollah said in a statement that fighting with Israeli forces continued on Bint Jbeil's outskirts and the surrounding area. It confirmed two of its men had been killed.

Neighbours identified the victim as Duha Abbas. The rocket crashed through the roof of her house, killing her immediately, they said.
  
The attack followed a barrage of rockets fired from Lebanon on the northern port of Haifa, which injured at least five people, three of them seriously.

The deaths brought to 42 - 24 servicemen and 18 civilians - the number of Israelis killed since the current troubles started on July 12.