The state department has reinstated Fulbright grants for seven Palestinians in Gaza to study in the US.

This reverses a decision to withdraw the scholarships because Israel has not provided exit permits to the students.

Israel tightened its blockade of Gaza after Hamas seized power there a year ago, largely cutting off the territory from the outside world.

The US consulate in Jerusalem has told the students that it is working to get them out of the territory.

"We are working very closely with the government of Israel in order to secure its co-operation in this matter," an e-mail message to the students read.