Gaza gunmen clashed overnight with an Israeli army force backed by bulldozers near the borders east of southern Gaza Strip town of Khan Younis, Hamas security sources said on Monday.

The sources said the clashes erupted when an Israeli army force, crossed the borders with two bulldozers and rolled into a Hamas- controlled area called al-Farahin east of the town.

Al-Qassam Brigades, Hamas armed wing said in a statement that its militants fired six mortar shells at the Israeli force and compelled it to retreat after bulldozers razed farms and lands of Gaza farmers.

Palestinian residents said the area witnessed overnight and early in the morning heavy clashes between the militants and the soldiers, adding that the Israeli army force still stationed in the area.

Medical sources in Gaza said no injuries were reported, but residents said that several civilians were seen fleeing their homes in fear of a larger Israeli army incursion into the area.

Hamas security sources said it's the first Israeli army ground incursion into Gaza Strip since a 22-day Israeli air, sea and ground military operation carried out in Gaza Strip and ended on January 18.

So far, Israel and Gaza militant groups had failed to agree on a long-term truce in Gaza after Israel linked accepting a truce with Hamas to the release of its captive Israeli soldier in Gaza Gilad Schalit.