Israel's targeted airstrike on Wednesday, a day after ceasefire talks in Egypt collapsed and renewed fighting in the region, failed to kill a notorious Hamas leader.

Israeli officials said the military targeted Mohammed Deif, leader of Hamas' Izz el-Deen al-Qassam Brigades. He is believed to be the brains behind numerous bomb attacks carried out by the militant group.

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Hamas spokesman Abu Obeida said the latest Israeli strike "failed," adding that Deif would continue to lead its army toward the liberation of the holy al-Aqsa mosque.

The group claimed Deif was not in the targeted house at the time, from where the bodies of a child and two women were pulled from - including Deif's wife and child, according to senior Hamas official Moussa Abu Marzouk.

Thousands of Palestinians flocked to Jabalaya to attend the funeral of Deif's family, The Globe and Mail reported.

Yaakov Perry, a Minister of Science and Technology and former head of an Israeli security bureau, told media Israel would not have bombed the house if it had known the intended target was not there.

Israel has launched more than 100 strikes in Gaza since Tuesday while Palestine has carried out at least 180 rocket strikes targeted at southern Israel. The latest eruption of violence comes in the wake of the failed Cairo peace talks following a 24-hour extension of the ceasefire.

Palestinian health officials reported 23 casualties from the attacks. No Israeli deaths have been reported so far.

Israel's Prime Minister Benjamin Netanyahu said at a news conference that the country would continue to legitimately target militant leaders, adding that it will be "a continuous campaign."

Netanyahu accused Hamas of savagery and of attacking civilians. He also likened the group to the Islamic State operating in Syria and Iraq.

Meanwhile, Obeida said Hamas would direct its efforts on Jerusalem's public sites, citing sports stadiums and the Ben Gurion International Airport. He warned against flights in the area starting Thursday and told Israeli civilians to stay in their homes.

An Egyptian official said on Wednesday efforts to achieve a ceasefire would continue, citing a sustainable ceasefire that would effectively "serve the interest of the Palestinian people," most notably with regard to the blockades and reconstruction.

TagsGaza, Hamas, Israel, Palestine, Mohammed Deif, Izz el-Deen al-Qassam, Benjamin Netanyahu