Vowing to liberate the whole of Palestine from Israeli clutches, Hamas leader Ismail Haniyeh in a fiery speech today told thousands of Palestinians that the Islamist faction's control over the Gaza Strip is "just a step" towards their goal.

War ravaged and poverty-stricken Gaza City was today draped in the Hamas's green flag, as tens and thousands of Palestinians rallied to express 'faith' for the outfit, which celebrated its 22nd year of formation.

"This movement, with the help of the militant factions liberated the Gaza Strip, and we say, brothers and sisters, we will not be satisfied with Gaza. Hamas looks toward the whole of Palestine, the liberation of the Strip is just a step to liberating all of Palestine," Hainyeh added.

We will never give up on Palestine from the river to the sea, Haniya told the crowd, referring to the pre-1948 borders of the British Palestine Mandate between the Mediterranean Sea and the Jordan River.

The speech was seen by many in the Fatah-controlled West Bank as one against efforts towards reconciliation. "It seems Hamas wants to continue to divide us, and would try to create disturbances in the West Bank. We would fight hard to prevent extremism from entering the West Bank", a young Fatah leader, who did not want to be named, said.

Israel Radio quoted Hamas sources as saying that captured IDF soldier Gilad Schalit would only see the light of day when Israel acquiesces to the Islamist group's demands and releases the prisoners that it has demanded.