Rebuffing the incoming Palestinian prime minister, the leader of Hamas made a rare public appearance Wednesday and said the militant group will not disarm, agree to a truce or join the new Palestinian government.

Sheik Ahmed Yassin struck a defiant tone against incoming Palestinian Prime Minister Ahmed Qureia, who has complained of the "chaos of weapons" in the Palestinian areas, proposed a comprehensive truce with Israel and invited Hamas into his government.

The setting of Wednesday's news conference reflected Hamas' growing concerns for the safety of its leaders. Yassin spoke to journalists at a mosque, presumably a site Israel would not attack because of religious sensitivities. He also was not flanked by senior Hamas officials, as would have been customary.

Yassin, along with other Hamas leaders, has been marked for death by Israel. He survived a Sept. 6 airstrike, and has only left his home once since then.

Qureia has not said what steps, if any, he would take to get illegal weapons off the street, as required by the U.S.-backed "road map" peace plan that envisions a Palestinian state by 2005. Qureia and other officials have said they won't use force against the militants.

Yassin said Wednesday that Hamas would not disarm voluntarily.

"The weapons that our people carry to defend our land and our people, nobody can confiscate them," he said. "We can only talk about this after liberating the land. Taking weapons means surrender and defeat."

Yassin also said Hamas would not agree to a truce with Israel; a unilateral cease-fire declared by Hamas and other militants June 29 collapsed in a burst of violence several weeks later.

"There is no place to talk about a truce because the enemy is continuing his aggression, killing and settlement activities," Yassin said, but stopped short of saying there would be continued Hamas bombings and shootings.

Qureia had also proposed that Hamas join his government. In the past, Hamas -- the largest Palestinian opposition group -- has said it wanted nothing to do with the Palestinian Authority, a product of interim peace deals with Israel the group opposes.

Yassin on Wednesday renewed his opposition to a broad coalition.

"We refuse to be part of any government under (Israeli) occupation," Yassin said. "If this government wants to liberate our land and our sacred places, we will surely welcome it. But if it wants to push us to surrender, we will reject it."

Israel Prime Minister Ariel Sharon, meanwhile, said in remarks published Wednesday that a large-scale swap of prisoners with Lebanese guerrillas is closer than ever, but will still require Cabinet approval.

Sharon also said Israel will not release Palestinian uprising leader Marwan Barghouti in the emerging deal with Hezbollah, and that Israel will insist on DNA testing of three bodies of Israeli soldiers that are to be handed over.

Any of the issues raised by Sharon in an interview with the Maariv daily could hold up or torpedo the German-brokered deal. Israeli Cabinet approval is not assured and Barghouti's attorney has said the Palestinian leader, considered a possible successor to Yasser Arafat, tops Hezbollah's list of prisoners it wants freed.

Sharon's comments marked the first time he has spoken publicly on a possible prisoner exchange.

"We are closer than before (to a deal), but it's still far from being finished," he told Maariv.

In the emerging swap, Israel would release several hundred prisoners, including Lebanese guerrilla leaders Abdel Karim Obeid and Mustafa Dirani, in exchange for ailing Israeli businessman Elhanan Tannenbaum and the bodies of three soldiers kidnapped by Hezbollah in 2000.

Israel had seized Obeid and Dirani in 1989 and 1994, respectively, as bargaining chips for the release of Israeli airman Ron Arad, who was shot down over Lebanon in 1986 and is believed by Israel to be held by Iran.

Sharon said he is certain Tannenbaum is alive, but that his health is deteriorating, and suggested Israel can't wait much longer to win his freedom.

He said he would seek Cabinet approval for what he said would be a complex decision. "Let there be not one minister who is not part of the discussion," Sharon said. "I want the ministers to be personally responsible for this decision."

Ministers would be forced to choose between bringing home captives at any price and not freeing those involved in deadly attacks on Israelis. The deal would likely be lopsided, leading to the release of several hundred Arab prisoners in exchange for one Israeli captive.

Israel has agreed to such a ratio in the past, including in 1985 when three Israeli POWs were traded for 1,150 Palestinian prisoners.

Palestinian sources say Israel has agreed in principle to release imprisoned leaders of militant groups and those with life sentences.

However, Sharon said that Barghouti "cannot be a condition for this deal," saying he was "responsible for acts of murder, and he is going to prison."

An Israeli security official, speaking on condition of anonymity, said about 300 prisoners would be freed.

Palestinian sources insisted Barghouti would be among them, despite Israel's public denials. Barghouti, a Palestinian legislator, is on trial for alleged involvement in attacks that killed 26 Israelis and insists the country has no right to try him since he was abducted from the West Bank.

Also in Gaza, a 16-year-old Palestinian was killed in a gunbattle between Palestinians and Israeli troops searching for weapons-smuggling tunnels along the Gaza-Egypt border.

The firefight erupted when 20 Israeli tanks and armored bulldozers entered the Rafah refugee camp. Mohammed Hamdan, a helper of the gunmen, was killed in the gunbattle, hospital officials said, and more than a dozen Palestinians were wounded. Palestinian witnesses said troops razed two houses.

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