"Starting today (Friday), at 10:00 (0700GMT), the local tactical pause in military activity will not apply to the area of Gaza City, which constitutes a dangerous combat zone," the military said in a statement, referring to daily pauses in certain areas aimed at facilitating aid distribution.
The military did not call for the population to evacuate immediately, but the army's Arabic-language spokesman, Avichay Adraee, said on Wednesday that the city's evacuation was "inevitable".
The UN estimates that nearly a million people currently live in Gaza governorate, which includes Gaza City and its surroundings in the north of the territory.
AFP photos from the centre of the territory on Thursday showed lines of Palestinians fleeing south in vans and cars piled high with mattresses, chairs and bags.
Defence Minister Israel Katz vowed last week to destroy Gaza City if Hamas did not agree to end the war on Israel's terms.
His ministry had previously approved the military's plan to seize the city and authorised the call-up of roughly 60,000 reservists.
In its statement on Friday, the military said it "will continue to support humanitarian efforts alongside ongoing maneuvering and offensive operations against terrorist organisations in the Gaza Strip".
On the ground, Gaza's civil defence agency reported 33 people were killed by Israeli forces across the Palestinian territory on Friday
Asked for comment by AFP, the Israeli military said it was "checking" the reports.
Media restrictions in Gaza and difficulties in accessing many areas mean AFP is unable to independently verify the tolls and details provided by the civil defence agency or the Israeli military.
The October 2023 Hamas attack on Israel that sparked the war resulted in the deaths of 1,219 people, mostly civilians, according to an AFP tally based on Israeli figures.
Israel's retaliatory offensive has killed at least 62,966 Palestinians, most of them civilians, according to figures from the health ministry in Hamas-run Gaza that the UN considers reliable.
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