At least seven Palestinians were killed and 12 wounded after an Israeli strike on a former school that was sheltering displaced people in Gaza City, the civil emergency service said on Saturday.

The Israeli military is looking into the report, a spokesperson said.

Earlier on Saturday the Israeli military said it had targeted Hamas militants who were operating within a school compound in Gaza City and that it had taken measures to reduce harm to civilians, reports Reuters.

The dead include a woman and her baby, according to medics. It was unclear whether the other fatalities were Hamas fighters.

The Palestinian Islamist group denies embedding its fighters among civilians in Gaza.