Police say militants in Gaza fired two long-range rockets on the city of Beersheba, reaching deeper into Israel than ever before.
One rocket landed on open ground, but the other fell on a kindergarten which was empty at the time.
Beersheba, southern Israel’s regional capital, is the furthest town so far to be targeted. Other rockets have fallen in Ashdod, Ashkelon and Sderot, killing four people since Saturday.
Surveying the damage from an earlier rocket attack on the town of Ashkelon, Israeli Defence Minister Ehud Barak is said to be considering a 48-hour truce with Hamas for humanitarian purposes.
The Israeli military estimate militants have a stockpile of around 2000 rockets, having used 1000 since the start of the air offensive on Saturday.