A top Israeli commander has said troops will continue their operation at Gaza's largest hospital Al-Shifa until the last militant is "in their hands".

Israeli forces launched the operation in and around Al-Shifa hospital on Monday, saying senior Hamas operatives were based at the sprawling compound.

Days of heavy fighting have followed, with the military reporting about 170 Palestinian militants killed and hundreds more arrested or questioned.

"We are continuing with this operation," Southern Command chief Major General Yaron Finkelman said in comments released on Saturday.

"We will finish this operation only when the last terrorist is in our hands - alive or dead," he added, following a Friday visit to Shifa.

The military said the sick and wounded at the complex in Gaza City had been moved to a "designated compound" in the hospital.

In video footage released by the army, soldiers unload supplies at the hospital and assemble what appears to be a hospital ward with a row of beds and IV stands.

About two tonnes of food and three tonnes of water were brought in, along with the medical equipment, the army said.