Fighting is raging into the night in the Gaza Strip, where Israeli ground forces and heavy armour have effectively cut the territory in two.

Supported by a naval, air and land bombardment, they have taken up positions on either side of Gaza City and along a major east-west road.

About 40 tanks were moving towards Khan Younis in the south, reports say.

At least 32 missiles were fired into southern Israel from Gaza on Sunday. Two people were lightly wounded in the Eshkol region, while one woman was slightly injured in Sderot.

Israeli military sources and witnesses said Israeli tanks and heavy armour had taken up positions on either side of Gaza City, in effect cutting Gaza into two parts, from the Karni crossing to the Mediterranean Sea.

It says 21 of the 70 people killed since the beginning of the ground offensive were children. Some 2,500 people have reportedly also been wounded.

The figures could not be independently verified. Israel is refusing to let international journalists into Gaza despite a ruling by its a supreme court to admit a limited number of reporters.

Hamas officials say that 10 of its fighters have so far been killed.

The Israeli military says one of its soldiers has been killed and 34 wounded in the ground offensive, three of them seriously. It believes about 80% of the Palestinians killed were Hamas members.