Tel Aviv/Gaza  - Israel dropped leaflets over Rafah in the southern Gaza Strip Wednesday, telling resident to leave the area until the next morning.

Witnesses said thousands of people fled after the leaflets were dropped. Some were heading to the northern part of the city, farther away from the border where many tunnels used for smuggling are located.

One witness said more than 100,000 leaflets were dropped and many of the residents were seeking refuge at UN schools in the area.

The Israeli military confirmed that it called on the residents to leave "effective immediately" until 8 am and that it was conducting airstrikes all over the enclave, including in Rafah, where some houses were said to have been destroyed.

Airstrikes in the evening targeted homes used for stockpiling weapons and tunnels, a military spokeswoman said.

A witness in Gaza City said a mosque was bombed in the Sheikh Radwan neighborhood and that attacks were ongoing. The military did not confirm this report.

Medical sources in Gaza said the Palestinian death toll in Operation Cast Lead, which began on 27 December, stood at 702 people. dpa