Five Palestinians have been killed in another Israeli air strike in central Gaza, bringing to 23 the number to die in Israeli attacks in the territory today.
The Israeli military has confirmed it launched a strike in the area.
'There was an aerial attack. We identified a group of armed gunmen in the area of where (the former Jewish settlement) Kfar Darom used to be,' a spokesperson told AFP.
Among the 23 who were killed were nine from the same family who died when aircraft bombarded a house belonging to a Hamas leader.
Israel claimed the attack wounded Mohammad Deif, who they claim was inside the three-storey building near Gaza City.
The Hamas armed wing denied Mr Deif had been hurt and vowed a 'painful' response.
At least 75 Palestinians and one Israeli soldier have now been killed since Israel stepped up its massive ground assault into Gaza last Wednesday in a bid to secure the release of the missing teenage soldier and to halt rocket fire.
Corporal Gilad Shalit, 19, was captured by members of three factions including the armed wing of Hamas.
Israel has vowed to continue the operation until militants free the captured soldier and stop launching makeshift rockets over the border.
Israel has come under pressure from the EU and UN over its air and ground assaults in Gaza, with fears of a humanitarian catastrophe in the densely populated territory of 1.4 million.
Prime Minister Ehud Olmert has defended the scale of the operation despite international criticism that the force has been disproportionate.