(Reuters) Israeli soldiers ride mobile artillery units just outside the Gaza Strip .
Israel's defense minister says Israeli ground forces have entered Gaza City, as attacks on the densely-populated strip continues for a tenth day.
According to local witnesses, dozens of Israeli tanks have entered the Zeitoun neighborhood of Gaza City, as exchange of fierce fire continues between Israeli forces and Hamas fighters.
"Gaza City is partially besieged and the forces have reached the ground targets we set for them," Israeli Defense Minister Ehud Barak was quoted by Yediot Ahronot as saying at a parliament session on Monday.
Israeli tanks and troops crossed the border late Saturday and entered northern Gaza after a week-long aerial and naval onslaught.
At least 531 Palestinians have been killed and over 2,600 others are wounded in the Operation Cast Lead, launched December 27.
Despite international calls for an immediate halt to the ongoing crisis in Gaza, Barak said the ground incursion would be continued until the objectives are reached.
"Hamas has suffered a very heavy blow, but we have yet to reach the goals we set for ourselves, so the operation continues. International talks are being held simultaneously," Barak said.
The Israeli defense minister also confirmed that more Israelis have been called up "in order to prepare for the next stage, if needed."
Tel Aviv says through its military campaign, it aims to force Hamas stop its rocket attacks on southern Israel.
The Gaza Strip has been under an Israeli blockade since the Hamas movement won a majority in the 2006 Palestinian election and took control of the area in mid-June 2007.