According to reports, the individuals, who Israel calls terrorists, are said to have crossed the so-called yellow line in Shujaiyya (Shejaiya), which the Israeli military is supposed to stay behind according to the ceasefire agreement.
"The soldiers opened fire on the terrorists who crossed the yellow line to remove the threat to the soldiers," the military says.
Shortly thereafter, the military reports that another group crossed the yellow line. The soldiers opened fire again to "remove the threat", adds the Israeli military.
Palestinian media report that at least two people were killed in the area on Monday morning.
On Sunday, attacks came from Hamas tunnels that killed two Israeli soldiers and injured three. According to The Times of Israel Hamas claimed they were not responsible for the attack because "communication has been broken" with members in areas controlled by Israel.
Israel has previously warned Hamas members on the eastern side of the yellow line to evacuate immediately or become military targets.
"Every Hamas member who is beyond the yellow line in Israel-controlled territory must evacuate immediately. Hamas leaders will be held responsible for every incident," Israel's Defense Minister Israel Katz said in a statement.