Six other people, including two militants, were injured in the same attack, which was carried out by Israeli aircraft in the northern Gaza town of Beit Hanoun.
Violence has intensified in the Gaza Strip ever since the radical Hamas movement seized it from President Abbas' Fatah last June, leaving the Palestinian leader in control of the West Bank.
Despite the strong international efforts, Palestinian militants continue to shell bordering Israeli towns with rockets and mortar rounds while Israel responds with frequent air strikes and ground operations.
A devastating Israeli offensive on the Gaza Strip in March killed 120 Palestinians, mostly civilians.
According to press reports, Egyptian mediators have brokered a preliminary agreement with Hamas on terms for a ceasefire with Israel in the Gaza Strip. Hamas is expected on Thursday to give a final response to Egypt's proposal.
However, Hamas leaders have repeatedly said there will be no truce with Israel until Tel Aviv lifts its economic blockade of the Gaza Strip imposed in January.
