Three soldiers have been killed in Rafah, the Israeli military said.
Israeli media reported that the soldiers were killed when a booby trap exploded on Tuesday, and three other soldiers were wounded.
The military says at least 290 soldiers have been killed since the ground operation in Gaza began in October.
Israel says it is carrying out limited operations in eastern Rafah along the Gaza-Egypt border.
Palestinians in Rafah reported heavy fighting on Wednesday as Israeli forces pressed their assault on the border town once seen as the territory’s last refuge.
The United States and other allies of Israel have warned against a full-fledged offensive in the city.
Israeli leaders say their forces must enter Rafah to dismantle Hamas and return hostages taken in the October 7th attack that triggered the war.
Fighting in Rafah has caused more than one million Palestinians to flee, most of whom had already been displaced in the war between Israel and Hamas.
They now seek refuge in squalid tent camps and other war-ravaged areas, where they lack shelter, food, water and other essentials for survival, the UN says.
Israeli bombardments and ground offensives in Gaza have killed more than 36,000 Palestinians, according to the Health Ministry, which does not distinguish between combatants and civilians.
Israel launched its war in Gaza after Hamas’s October 7th attack in which militants stormed into southern Israel, killed some 1,200 people – mostly civilians – and abducted about 250.
Israel says around 100 hostages are still captive in Gaza, along with the bodies of around 30 more.