The Palestinian resistance movement of Hamas said on Wednesday its military commander was alive and still calling the shots in the ongoing encounter of the Zionist aggression on `Gaza.

The Palestinian resistance movement of Hamas said on Wednesday its military commander was alive and still calling the shots in the ongoing encounter of the Zionist aggression on `Gaza.

"The head of the Ezzedine al-Qassam Brigades Abu Khaled is still alive and leading the military operation," a source close to the resistance movement told AFP, using Deif's nom-de-guerre.

His remarks were made after an Israeli air strike leveled a six-storey house in Gaza City, killing Deif's wife and infant son.

It was not immediately clear whether Deif had also been killed or injured in the strike, which killed his wife and son.

Hamas spokesman Sami Abu Zuhri also issued a statement, saying Israelis would not be safe until Deif decided so.

"The occupation will pay for its crimes against Palestinian civilians and those living around the Gaza border will not return home until Mohammed Deif decides so," he said.