Israelis demand hostage deal in one of the biggest protests since October

Tens of thousands gather in Tel Aviv after eight soldiers are killed in Rafah ambush

People light flares during an anti-coalition protest outside the Kirya military headquarters in Tel Aviv. EPA

Thousands of Israelis took to the streets of Tel Aviv on Saturday to demand a ceasefire deal that would lead to the return of hostages being held in Gaza.

Images broadcast by Israeli media showed huge crowds lining Kaplan Street in one of the largest demonstrations in the city since October.

Protesters held signs with chanted slogans demanding the immediate resignation of Israeli Prime Minister Benjamin Netanyahu.

The latest anti-coalition protest, events that occur weekly in Israel, came after authorities announced eight soldiers were killed in an ambush in Rafah.

In a video statement issued late on Saturday, Mr Netanyahu said there was no alternative but to stick to the goals of the war to defeat Hamas and take the hostages back.

Although surveys show solid support among the Israeli public for continuing the war, the protests emphasise the divisions in Israeli society that have reopened after a period of unity at the start of the conflict.

At a rally on Saturday evening, participants watched a video message from Andrey Kozlov, who was rescued from Hamas captivity a week ago.

“More than 120 hostages are still there, and I can't feel all the happiness from this situation because I was rescued and they were not,” he said, according to the Hostages Families Forum Headquarters.

Israeli police detain a protester during a demonstration to call for the return of the hostages in Gaza. AP

“I ask to bring them home as soon as possible. Israel, world, Hamas, I ask you to make a deal as soon as possible.”

One of the protesters, Graciela Barchilon, 68, said the deaths of soldiers in the besieged enclave were a "collective loss".

"Every soldier who dies is like a family member who dies," she said. "I feel a lot of anger and disappointment. I believe this government is not working and we have to go to elections now."

The Israeli military said the eight soldiers were killed on Saturday when their armoured vehicle was struck by a bomb. Capt Wassem Mahmud, 23, and seven other soldiers died "during operational activity in southern Gaza", the military said in a statement.

It said the vehicle was hit in the Tal Al Sultan area of Rafah, where troops are engaged in fierce street battles with militants.

Tens of thousands of people attend the demonstration in Tel Aviv. AFP

Preliminary enquiries suggested the vehicle "got hit as a result of an explosion of a side bomb", the military said.

"The explosion was significant and may have been caused by the initiation of the explosive material on the vehicle. All this is not supposed to happen and therefore the incident is being examined.

"There was a very serious damage to the vehicle and those in it, and a large explosion making it difficult to identify and locate the bodies."

Military spokesman Rear Admiral Daniel Hagari said in a televised briefing on Saturday that "there was a strong explosion" that appeared to be from a device "planted in the area or from the firing of an anti-tank missile".

The deaths in the blast were among the heaviest losses for the military since it began its ground offensive in Gaza on October 27.

Twenty-one soldiers were killed on January 22 when rocket-propelled grenade fire hit a tank, the military said at the time.

Two buildings exploded because troops had planted explosives in them after the structures were linked to militants, it said. Saturday's blast takes to 306 the military's death toll in Gaza since October 27.

More than 37,000 Palestinians have been killed since Israel began its bombardment of the enclave.