Israeli shelling has killed Palestinians working in the fields in a Gaza farm village.

The farmers died while working in the fields of Beit Hanoun, in an Israeli barrage which was a counter attack following rocket fire from Gaza.

Hamas medical officials have confirmed the Palestinians killed on Sunday were on a farm when they were shelled.

One, a 91 year old farm caretaker was killed along with a 20 year old worker.

The teenage grandson of the farm holder also died of wounds sustained in the incident, which occurred close to the Gaza-Israel border.

Israeli military officials have said the firing was aimed at a group of terrorists preparing to fire a rocket-propelled grenade over the border.