Israeli forces opened fire on people waiting for aid near Gaza City leaving more than 70 dead and 280 wounded, with one hospital saying it had received 10 bodies and dozens of injured patients, Gaza Health Ministry said on Thursday.

A spokesperson for Israel's military avoiding taking responsibility for the bloodbath said he had no knowledge of any shelling at that location.

Gaza Health Ministry spokesperson Ashraf al-Qidra said the incident took place at al-Nabusi roundabout west of Gaza City in the northern part of the enclave.

Medical teams were unable to cope with the volume and severity of injuries from dozens of wounded people who arrived at al-Shifa hospital, Qidra said.

The head of Kamal Adwan hospital in Gaza City, Hussam Abu Safieyah, said it had received 10 dead bodies and dozens of wounded patients from the incident west of the city.

"We don't know how many there are in other hospitals," Safieyah told Reuters by phone.

Hamas warned in a statement that the incident could lead to the failure of talks aimed at a deal on a truce and hostage release.