Israel says it has withdrawn all troops except one brigade from southern Gaza Strip.

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The Israeli military has withdrawn all of its ground troops from the southern Gaza Strip except for one brigade, a military spokesperson said on Sunday.

An Israeli brigade is typically made up of a few thousand troops.

The spokesperson did not provide a reason for withdrawing soldiers or the total numbers involved, however the IDF has been reducing its presence in Gaza since the start of the year to relieve reservists and due to growing pressure from the United States to improve the humanitarian situation.Residents of the southern Gaza city of Khan Younis, which has come under Israeli bombardment in recent months, said they had seen Israeli forces leaving the centre of the city and retreating to the eastern districts.

It was unclear whether the withdrawal would delay a long-threatened incursion into the southern Gaza city of Rafah, which Israeli leaders have said is needed to eliminate Hamas.

The plan to attack Rafah has drawn international concern, with more than 1 million Palestinians sheltering in the territory near the border with Egypt.

Israeli Prime Minister Benjamin Netanyahu said again on Sunday that there would be no ceasefire without the release of remaining hostages from Gaza.

The withdrawal comes as Egypt prepares to host a new round of talks aimed at reaching a ceasefire and hostage release deal.

It also comes amid mass protests in Israel calling for Israeli Prime Minister Benjamin Netanyahu's resignation.

The UK's foreign minister David Cameron also said on Sunday that Britain's support for Israel "is not unconditional", after the IDF admitted killing seven aid workers — including Australian Zomi Frankcom.