"The civil defence crew were able to recover 31 martyrs and 20 wounded from a house belonging to the Hassan family, which was targeted by the Israeli occupation forces in the Nuseirat camp," Gaza civil defence agency spokesman Mahmud Bassal told journalists.

He said rescue workers were continuing to search for missing people under the rubble.

Earlier on Sunday the Al-Aqsa Martyrs Hospital had said it had received the bodies of 20 people killed in the strike which witnesses said occurred around 3:00 am local time.

The Israeli army when contacted by AFP asked for specific coordinates of the strike.

Palestinian official news agency Wafa reported that the wounded included several children.

Fierce battles and heavy Israeli bombardments have been reported in the central Nuseirat camp since the military launched a ground operation on the southern city of Rafah in early May.

Palestinian militants and Israeli troops have also clashed in north Gaza's Jabalia camp for days now.

Witnesses said several other houses were targeted in air strikes during the night across Gaza, and that strikes and artillery shelling also hit parts of Rafah during the night.

The Israeli military said two more soldiers were killed in Gaza the previous day.

The military said 282 soldiers have been killed so far in the Gaza military campaign since the start of the ground offensive on October 27.