The Israel Air Force launched missiles at Palestinian gunmen attempting to launch Qassam rockets at southern Israeli communities Saturday evening, killing two and injuring a third.
The strike is part of Operation Blue Skies which involves artillery and air fire to quell Qassam attacks.
The cell was identified operating in the former settlement of Elei Sinai. The IDF said the operation has been successful in keeping Palestinian cells away from northern Gaza territories.
With the exception of Palestinian policemen manning the border in coordination with Israel, the northern Gaza Strip has been devoid of terror cells.
Gaza residents initially said the three were family members who were in the area but have no connection to terror. However, Palestinian security officials later admitted those hit were members of a Qassam launching cell.
According to the Palestinians, those killed and wounded were members of the Fatah's al-Aqsa Martyrs' Brigades.
The IDF, meanwhile, said forces ensured beyond any doubt the targets they were hitting were terrorists before firing. According to military sources, the Palestinians were planning to fire a rocket at Israel. The IDF said the army fired warning shots, in accordance with the rules of engagement, before targeting the cell.
Ali Waked contributed to this report