"Two hundred to 300 displaced people killed in occupation (Israeli) strikes on the yard" of the Ahli Arab hospital in central Gaza, the ministry said.

"Hundreds of victims are still under the rubble," it added.

The media office of Gaza's Hamas government described the attack as a "war crime".

Tens of thousands of families have flocked to Gaza's overwhelmed hospitals seeking refuge from seemingly endless Israeli army shelling.

Israel has been bombing targets in Gaza since Hamas militants from the territory attacked southern Israel on October 7, triggering a war which has left thousands of dead on both sides.

"The hospital was housing hundreds of sick and wounded, and people forcibly displaced from their homes" because of other strikes, a statement said.

Al Jazeera footage from the scene showed medics and civilians recovering bodies with white bags or blankets. Bloodstains and multiple torched cars were visible in the dark hospital courtyard.

Israeli military spokesman Daniel Hagari told a televised press briefing: "We will look into it... the strike happened just a short while ago."

Hospitals had been attractive refuges for the displaced because they had been relatively spared from the Israeli bombing raids.

Around 3,000 people have been killed in Israeli air strikes across the Gaza Strip since the war erupted on October 7.

More than 1,400 people in Israel have been killed, the majority gunned down by Hamas militants who crossed from Gaza and attacked border communities.