The Israeli army confirmed the air strike in the town of Rafah, and said Palestinian fighters had launched six mortar bombs across the border.

Relatives said both the Palestinians killed were civilians and one was aged 15.

Hamas, which controls the Gaza Strip, said one of its members was wounded in the incident.

Fighters have fired dozens of rockets and mortar bombs at Israel in the past three weeks after Israeli raids killed about a dozen gunmen.

Saying it was responding to the rocket attacks, Israel has tightened its closure of Gaza borders, choking off some food supplies to the territory and raising international concern.

The violence has strained a ceasefire in place since June, which is due to run out later this month.

Agencies