Hamas today claimed responsibility for the Jerusalem massacre in which a Palestinian gunman disguised as a rabbinical student opened fire on a religious school, killing at least eight Israeli students.

As Jewish seminarians and Israeli hardline lawmakers demanded revenge for the killings, an unnamed official came forward claiming the Palestinian Islamic organisation was behind what was the first atrocity in the city for four years.

Speaking on condition of anonymity, a Hamas Official said: "The Hamas movement announces its full responsibility for the Jerusalem operation. The movement will release the details at a later stage."

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In Hamas-controlled Gaza, Palestinians took to the streets in celebration after the attack last night, which has since been condemned by leaders worldwide.

The fanatical gunman has been identified by police as Alaa Hisham Abu Dheim, from east Jerusalem who was a driver for the Merkaz Haraz Yeshiva seminary. By the time he was shot down by a soldier, it had become a bloodbath.

Yehuda Meshi Zahav, head of the Zaka rescue service, entered the school afterwards to find blood everywhere amid scenes reminscent of an abattoir.

He said: "The whole building looked like a slaughterhouse. The floor was covered in blood. The floors are littered with holy books covered in blood."

Afterward, the Jewish seminarians gathered outside the library and screamed for revenge, shouting, "Death to Arabs".

Gordon Brown has condemned the shooting, saying: "The whole world will be outraged at last night's massacre."

The Prime Minister added: "Those who wish to stop the peace process by violence should be stopped from doing so by the combined voices of people throughout the world.

"The way to answer those people of violence is to move forward the peace process as quickly as possible."

Thousands lined the streets for today's funeral processions of the dead students, one of whom was 26 and the rest teenagers of between 15 to 19-years-old.

Palestinian president Mahmoud Abbas has condemned the killings but some Israeli lawmakers are arguing that he should go further and break off crucial peace talks.

"The government must immediately halt all negotiations and eradicate terrorism in every way possible," said David Rotem of the hardline Yisrael Beiteinu party.

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