Al-Awda Hospital in Nuseirat says it has received eight dead and 22 wounded from the attack.
A civil defence spokesman told AFP that the attack occurred during a funeral procession.
The Israeli military (IDF) has confirmed that it carried out the attack and said it was directed against a terrorist cell belonging to Islamic Jihad.
Civil Defence and hospitals in Gaza reported that additional people were killed in separate Israeli attacks on Friday.
At least 1,123 people have been killed in Gaza since the ceasefire between Israel and the terrorist group Hamas came into effect in October last year, according to the Hamas-controlled health authorities.
