Ten people were killed and dozens wounded in fresh violence between rival groups in a Palestinian refugee camp in southern Lebanon, with a senior Palestinian official crossing into the country today amid fears the bloodshed could spill over.

The Ail el-Khilweh camp has been rocked since late July by factional clashes between the Palestinian Fatah movement and Islamist militants.

At least 12 people were killed in the first round of clashes.

Clashes resumed over the weekend after a month-long ceasefire, and at least ten people have been killed so far, according to two Palestinian sources in the camp. Six of them were Fatah fighters and another two were Islamist fighters.

The other two victims were civilians, a Lebanese security source and two Palestinian sources said.

One person was killed on Saturday when a stray bullet from the clashes hit a town near the camp, the Lebanese security source said.

Five Lebanese army soldiers were also wounded, one of them seriously, when two of their positions on the outskirts of the camp were shelled on Sunday, according to an army statement.

Ain al-Khilweh is the largest of 12 Palestinian refugee camps in Lebanon, hosting about 80,000 of the up to 250,000 Palestinians across the country, according to the United Nations Refugee Agency (UNRWA).

The creation of the camps goes back to 70 years ago with the establishment of the state of Israel in 1948.

The clashes raised new fears of spreading to the neighboring city of Sidon.

Residents fear a similar scenario for the northern Palestinian camp of Naher al-Bared where the Lebanese army launched a 15-week offensive to drive out Islamist groups in 2007.

A senior Fatah official is expected in Lebanon today and the acting head of the powerful General Security Intelligence Service will convene an emergency meeting on the matter.

UNRWA has said armed groups have taken over eight of its schools, forcing it to look for alternatives to accommodate students as the school year approaches.