At least 70 have been killed in the Al-Maghazi refugee camp following an Israeli air strike.
According to a spokesperson of Gaza's Hamas-run Health Ministry, the death toll was likely to rise given the large number of families living in the area.
The Israeli military told the BBC it was looking into reports of the strike.
Israeli and Arab media say Egypt, which borders the Gaza Strip, has put forward a new proposal for a ceasefire between Israel and Hamas.
Dozens of injured people were rushed from Maghazi to nearby Al-Aqsa Hospital with footage showing some children's faces covered in blood and body bags piled outside.
The health ministry says three houses were hit in the attack late on Sunday.
BBC
Stay tuned for the latest news on our radio stations