Israel had given the population of the northern half of the Gaza Strip until Saturday morning to move south.
As the deadline passed, troops were massing around the Gaza Strip.
Israel contests the assertion that it drove Palestinians out, saying it was attacked by five Arab states after its creation.
Palestinians and Arab states say a deal should include the right of those refugees and their descendants to return, something Israel rejects.
"We tell America, Israel and those who stand with it that we will never leave the Gaza Strip.
Persons:
Khan Younis, Ahmed Zakot, Israel, Fawziya Shaheen, Shaheen, Majdal, gunning, Shehada Abu Draz, Michael Georgy, Janet Lawrence
Organizations:
United Nations, REUTERS, Al, Palestinian, Hamas, Thomson
Locations:
Gaza, Israel, America, British, Palestine, Egypt, American