It comes as 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.
According to ministry spokesman Ashraf al-Qudra, a densely populated residential block was destroyed.
A father said he had lost his daughter and grandchildren, adding that his family had fled from the north for safety in central Gaza.
“They lived on the third floor of one of the buildings,” he said. “The wall collapsed on them. My grandchildren, my daughter, and her husband are all gone.
“We are all targeted. Civilians are targeted. There is no safe place. They told us to leave Gaza City; now we came to central Gaza to die.”
The Palestine Red Crescent Society says “intense” Israeli air strikes have led to the closure of main roads between Maghazi and two other refugee camps, Al-Bureij and Al-Nuseirat, “hindering the work of ambulances and rescue teams.”.
In a statement to the BBC, the Israeli military said it had received “reports of an incident in the Maghazi camp.”.
