The Associated Press has released satellite images showing new tent constructions near Khan Younis in the Gaza Strip.
Israel is planning an offensive against Rafah, and the tent construction is in a area that has been targeted in recent weeks.
The Israeli military aims to evacuate civilians during the anticipated attack.
Meanwhile, in Syria, a failed rocket strike occurred at a US-led coalition base at Rumalyn, marking the first such incident since February.
A US defense official reported that Iranian-backed militias have attacked a US facility in Iraq or Syria, but no personnel were injured and no group has taken responsibility.
The attack is part of the larger conflict in the Middle East between Israel and the US on one side, and Iran and allied militant groups on the other.
Tensions have escalated with direct fire between Israel and Iran, raising concerns of a larger war.
The conflict was sparked by an October raid by Hamas and other militants into southern Israel, resulting in the deaths of around 1,200 people, mostly civilians, and the abduction of around 250 hostages.
Israel reports that around 100 hostages and the remains of over 30 others are still being held.
The Israel-Hamas conflict has resulted in the deaths of over 34,000 Palestinians, according to local health officials, with at least two-thirds being children and women.
A devastating conflict in Gaza has destroyed much of its two largest cities, forcing around 80% of the population to flee within the besieged coastal enclave.
The US House of Representatives approved a $26 billion aid package on Saturday, which includes approximately $9 billion in humanitarian assistance for Gaza, on the verge of famine, and billions for Israel.
The US Senate is expected to pass the package as soon as Tuesday, and President
Joe Biden has promised to sign it immediately.