Israel has been shelling Gaza from the sea and air as its bombardment of the coastal enclave moves into a fifth day.
One missile hit a media tower block in the centre of Gaza City, reportedly injuring four Palestinian journalists.
Israel says it still wants to hit hundreds of Gaza targets as it seeks to stop Hamas and other militant groups from firing rockets into Israel.
Gaza militants on Saturday fired dozens of rockets into Israel, including one at Tel Aviv that was intercepted.
At around 02:00 (00:00 GMT), the BBC's Jon Donnison in Gaza City reported hearing more than a dozen shells, apparently fired from Israeli war ships - a new development in Israel's operation Pillar of Defence.
Our correspondent said a Hamas television station, al-Quds TV, was reportedly the target of the strike on the media tower block - which until last year housed the BBC's Gaza office.
'Back to the Middle Ages'
Egypt's president had said earlier there were "indications" a truce could be reached but that there were "no guarantees".
Mohammed Mursi was speaking in Cairo after meeting Turkish Prime Minister Recep Tayyip Erdogan. Hamas leader Khaled Meshaal is also in the Egyptian capital for the talks, aimed at de-escalating the conflict.
The Arab League has been holding an emergency meeting, also in Cairo, and announced it would send a delegation to Gaza in the next few days.
Israel has put 75,000 reservists on stand-by, with one government minister being quoted as saying a ground offensive could be launched into Gaza on Sunday if the rocket fire does not stop.
Israel's army said on Saturday that 492 rockets fired from Gaza had hit Israel, while another 245 had been intercepted by its Iron Dome missile defence system since its operation began.
Interior Minister Eli Yishai was quoted by Israel's Haaretz newspaper as saying that the goal of the operation was "to send Gaza back to the Middle Ages. Only then will Israel be calm for 40 years".
At least 40 Palestinians and three Israelis have now died since Israel killed the Hamas military chief Ahmed Jabari on Wednesday.
Militants and civilians, including at least seven children, have been among the Palestinians killed during Israeli strikes in recent days, Hamas says.
The three Israelis who died were in a building in the southern town of Kiryat Malachi which was hit by a rocket on Thursday. - BBC News
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