Gaza: The United States on Sunday resumed the operations of the aid organisations it funds in the Hamas-ruled Gaza Strip after the Islamist group retracted its demand to scrutinise confidential documents about their work, a US official said.

On Friday, Usaid partner organisations stopped work after Hamas closed one of the non-governmental organisations, the International Medical Corps (IMC), when officials there denied the Islamist group access to documents. It was allowed to reopen on Sunday.

"As of August 14, Usaid's implementing partners have resumed delivering assistance to the Palestinian people of the Gaza Strip," the official told Reuters.

The US official, who declined to be named, said allowing access to the records could revealed financial and administrative information and details of NGOs' staff and beneficiaries.

A senior Hamas official confirmed the group had allowed the IMC to reopen and added that it had suspended its demand to audit Usaid-funded groups until a mechanism could be agreed.

Palestinian-based NGOs funded by the European Union have in the past also complained of Hamas meddling in their affairs. The US official based in the region had said the audits were unwarranted.

Robert Serry, the UN special coordinator for the Middle East peace process said in a statement he welcomed the reopening of the IMC and "recognises the important work of NGOs in Gaza and is confident that a way forward has been reached in the interest of the people of Gaza".

The US official said some 600,000 Gazans - about a third of the population of the coastal strip - were receiving some $98 million worth of assistance from Usaid projects in health, education, construction and infrastructure.