The Israeli army on Sunday ordered Khan Younis residents to evacuate the Al Jalaa neighborhood of Khan Younis previously designated as a "safe humanitarian zone" by the army.
The al-Jalaa neighborhood will no longer be part of the "humanitarian zone," an army statement said.
It claimed that the Palestinian resistance group Hamas "operates" from the neighborhood and that it will be a "dangerous combat zone."
Although the Israeli army has previously designated certain locations "safe," it continued to pound these areas, causing many fatalities among Palestinians.
On Saturday, at least 100 worshippers were killed and several injured when Israeli aircraft targeted Palestinians performing fajr (dawn) prayers at the Al-Taba'een School in the Al-Daraj neighborhood, Gaza City.
Despite appeals Thursday from mediators, including Egypt, the US and Qatar, to stop hostilities, reach a cease-fire and a hostage exchange agreement, Israel persists with its deadly onslaught against Gaza.
The Israeli onslaught has killed nearly 39,800 victims since October following a cross-border attack by the Palestinian resistance group, Hamas.
More than 10 months into the Israeli onslaught, vast tracts of Gaza lie in ruins amid a crippling blockade of food, clean water and medicine.
Israel is accused of genocide at the International Court of Justice (ICJ), which ordered it to immediately halt its military operation in the southern city of Rafah, where more than 1 million Palestinians had sought refuge from the war before it was invaded on May 6.