"A bomb placed in a BMW in Sidon detonated, wounding Hamas official [Abu Hamza] Hamdan", a military source said.
A member of the Palestinian group Hamas has been hurt in a bomb blast in the Lebanese city of Sidon.
Mohamad Hamdan, also known as Abou Hamza, was identified as the target of the bombing.
The blast took place around noon (1000 GMT), the Lebanese army said in a statement.
Security forces cordoned off the area and firefighters worked to put out the blaze.More news: Alastair Campbell: I Hate The Term Second Referendum
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Conflicting reports emerged about the extent of Hamdan's injuries.
Hamdan was reportedly conscious following the attack, and was rapidly transferred to a nearby hospital, the source said.
Military and medical sources told AFP that a Hamas official was wounded, while Al Arabiya reported that Abu Hamza Hamdan was killed in the attack.
Sidon is home to two of the 12 Palestinian refugee camps in Lebanon.
These units - which include Hamas and rival Palestinian faction Fatah - have fought several battles with other groups inside Ain al-Hilweh.