Palestinians work to extinguish a fire at the site of an Israeli strike on a tent camp for displaced people in Deir Al-Balah. Reuters

Gaza's civil defence agency said Israeli bombardment of a school compound in Gaza City killed at least 17 people on Saturday, as Israel's military reported it had hit a Hamas command centre.

"There are 17 martyrs and several wounded due to Israeli shelling on Hamama school," the agency said in a statement, updating an earlier toll of 10 killed.

The Israeli military confirmed the strike, saying it had hit a Hamas command and control centre located inside the compound.

Earlier, civil defence spokesman Mahmud Bassal said the compound was housing Palestinians displaced from their homes in the ongoing war between Israel and Hamas fighters.

Israel's military said the compound was being used by Hamas fighters to manufacture weapons, adding it was a "hiding place for Hamas terrorists".

Palestinians react to fire from an Israeli strike in the courtyard of Al Aqsa Martyrs hospital, Gaza Strip, on Sunday. AP

It has repeatedly accused Hamas of using civilian facilities as command and control centres or to hide their commanders and fighters. The Palestinian group denies the accusation.

The war in Gaza erupted after Hamas fighters attacked Israel on October 7, which resulted in the death of 1,197 people, mostly civilians, according to an AFP tally based on official Israeli figures.

The Palestinian group Hamas also seized 251 people, 111 of whom are still held hostage in Gaza, including 39 the military says are dead.

Israel's military campaign has killed at least 39,550 people, according to the Hamas-run territory's health ministry.

Agence France-Presse