The BBC has also verified pictures on social media which shows an Israeli tank operating near the city.
The head of the Israel Defense Forces (IDF) later told troops the IDF was also fighting “strongly and thoroughly” in south Gaza.
Lt General Herzi Halevi was speaking to reservists from the Gaza division about military objectives and the IDF’s killing of Hamas commanders.
He told the soldiers: “We fought strongly and thoroughly in the northern Gaza Strip, and we are also doing it now in the southern Gaza Strip”.
Since a week-long ceasefire ended on Friday, Israel has resumed a large-scale bombing campaign on Gaza, which residents of Khan Younis have described as the heaviest wave of attacks so far.
Egypt have an empty space they can go there, but since they left their home, it is now own by the state.