Another three people injured in the blast are currently in hospital.
Israeli media reported the death toll in the blast as four, saying that the explosion also killed a bystander.
The Hamas-controlled Gaza Interior Ministry initially blamed Israeli troops for the attack, but later withdrew the claim. Israeli military officials denied any involvement in the incident.
A little-known Fatah militant group later assumed responsibility for the explosion in a leaflet, saying its militants had installed a landmine on the roadside in an attempt to kill a prominent Hamas leader.
The rival factions of Hamas and Fatah continue to clash even as the Israeli Army launches rockets at the Gaza Strip. One Hamas militant was killed and another injured during a rocket strike in the Gaza city of Rafah on Wednesday. Shortly after this attack, a second militant was killed in an Israeli ground operation in Khan Yunis.
A group of Palestinian soldiers were involved in a shootout with militants in the northern part of the Gaza Strip, but no casualties were reported.
