RAMALLAH, West Bank?Israeli tanks and helicopters shelled a heavily fortified Palestinian security headquarters in an all-night assault Tuesday. Fighting raged outside Bethlehem’s Church of the Nativity, and Israel’s prime minister proposed exile for Palestinian leader Yasser Arafat.

Nine Palestinians and an Israeli soldier were killed in Tuesday’s violence. By nightfall, most of the 400 Palestinians trapped in the compound of West Bank security chief Jibril Rajoub surrendered to Israeli troops. Israel had assaulted the compound saying top militants were inside.

Tuesday’s fighting came as Israel widened its 5-day-old military offensive, launched to uproot militants blamed for a string of terror attacks on Israelis.

Prime Minister Ariel Sharon said Tuesday he has proposed that European Union envoy Miguel Moratinos or other diplomats fly Arafat into exile, raising the idea in public for the first time.