A Hamas official has called the evacuation order a dangerous escalation of the conflict.
Palestinians have started leaving parts of eastern Rafah in Gaza after Israel urged 100,000 people to move towards an expanded humanitarian zone.
It comes ahead of an expected offensive on the city, where more than 1.4 million people are sheltering.
The Israeli Defence Forces says it is a limited scope operation and not a wide-scale evacuation of eastern Rafah, adding that evacuees will be directed to tent cities in Khan Younis and al-Mawasi.
A Hamas official calls the evacuation order a dangerous escalation of the conflict.
It comes even as the latest ceasefire talks between Israel and Hamas have stalled.
Israeli strikes in Rafah reportedly killed at least 12 people overnight, while four Israeli soldiers were killed in a Hamas rocket attack near the Kerem Shalom crossing.
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