The dead man was 33-year-old Omar Yunis and that the injured were mostly women and children, the youngest an eight-month-old baby, Aljazeera's correspondent said.
Two missiles struck the house in al-Nafaq Street.
The Israeli army said Palestinian factions were storing and manufacturing weapons in the house, Aljazeera's correspondent said.
The attack follows the death of an 18-year-old Palestinian in an Israeli helicopter strike in a village near Deir al-Balah in the central Gaza Strip.
Israel withdrew tanks and bulldozers from most areas of central Gaza on Friday but is continuing an air campaign to secure the release of a captured soldier.
Tanks and armoured jeeps that were positioned in the centre of the Gaza Strip near the Deir al-Balah refugee camp and the town of Khan Yunis have pulled out of the area.
Ahmed al-Kurd, the Hamas mayor of Deir al-Balah, said at least 30 hectares of farmland and orchard, largely olive trees, had been devastated by the Israeli troops. He said about 20 homes had been damaged or destroyed.
The youngest casualty was
eight months old
An army spokeswoman said the only place where Israeli ground forces remained in Gaza was Dahaniya, in the south, near the former international airport that was destroyed by the army during the second Palestinian uprising.
Earlier on Saturday, Israel attacked the Palestinian economy ministry.
The building caught fire as a result of the air strike, causing severe damage. The raid followed a similar strike on the Gaza building of the foreign ministry on Thursday.
The offices of the prime minister and interior minister have also been destroyed. The second attack destroyed a bridge near the Bureij refugee camp.
Palestinian ministries have been
attacked by Israeli forces
Palestinian officials said there were no casualties in either raid.
In a separate incident, Aljazeera reported that a Palestinian was killed on Saturday morning by Israeli fire in the town al-Qarara, north of khan Yunis in the southern Gaza Strip.
More than 80 Palestinians have been killed in air and ground operations in Gaza.