Israel said on Wednesday it will open the Rafah crossing β€œexclusively for the exit of residents” from the Gaza Strip, as Hamas returned the remains of a deceased hostage.

The key border crossing will be open β€œin the coming days” and the β€œresidents' exit will be facilitated through co-ordination with Egypt, following security approval by Israel”, according to a statement by Cogat, the Israeli military's arm that oversees aid flows.

It did not say whether there will be restrictions on who is allowed to leave, nor did it give a specific time for when the crossing will open.

Egypt denied on Wednesday that it was working with Israel to allow Gaza residents to exit the strip, saying that β€œif there was an agreement to open the border crossing, it would be two-way for residents to enter and exit, in line with US President Donald Trump's plan”.

It is not known what Egypt's denial means for Israel's planned opening of the crossing. The announcement came as Gazans reported some of the worst nights of attacks since the ceasefire began in October.

As part of the ceasefire agreement, Hamas handed over the body of a dead hostage to the Red Cross on Wednesday. Israel said the coffin was on the way to troops in the Gaza Strip to be sent for testing.

Earlier in the day, the Islamic Jihad group said it had located the remains in northern Gaza. Hamas has so far returned all 20 living hostages and 26 bodies in exchange for around 2,000 Palestinian detainees and convicted prisoners.

Two more deceased captives - an Israeli police officer and a Thai agricultural worker - are still in Gaza. If the remains handed over on Wednesday are identified as those of a hostage, only one captive will remain held in Gaza.

Residents living near the Israeli-designated β€œyellow line” in eastern Gaza say the Israeli army continues to bombard residential areas. β€œWe heard fire, shooting, and the shooting hit my house,” said Haitham Krayem, 32, who lives about 200 metres from the line. β€œThe shooting didn’t stop for hours.”

He and 30 of his family members fled under what he described as β€œchaotic, random gunfire” from quadcopter drones and tank shells. β€œWhen I turned on a lamp, the shooting immediately targeted the house,” he said.

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