Israel's army says it has seized Gaza's Rafah crossing with Egypt, after continuously bombarding eastern Rafah overnight.
Tanks moved in on the area, a vital entry point for aid, a day after Israel ordered civilians to evacuate the area.
Truce talks meanwhile are to resume in Cairo after Israel said terms which Hamas had agreed to were unacceptable.
Israeli Prime Minister Benjamin Netanyahu rejected it as \"far from Israel's basic requirements\".
The country's war cabinet voted to continue operations in Rafah, but is however sending a delegation to the talks in Cairo.
Mr Netanyahu's comments came after Hamas said it had accepted truce terms offered by Qatari and Egyptian mediators.
It is not clear exactly what Hamas has agreed to, but it is believed differences lie in wording to do with ending or pausing the war.
\"The ball is now in Israel's court,\" an official in the Palestinian group said.
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