JERUSALEM (AP) Israels military announced Sunday it had withdrawn its forces from the southern Gaza city of Khan Younis, wrapping up a key phase in its ground offensive against the Hamas militant group and bringing its troop presence in the territory to one of the lowest levels since the six-month war began.

But defense officials said troops were merely regrouping as the army prepares to move into Hamas last stronghold, Rafah . The war in Gaza continues, and we are far from stopping, said the military chief, Lt. Gen. Herzi Halevi.

Local broadcaster Channel 13 TV reported that Israel was preparing to begin evacuating Rafah within one week and the process could take several months.

Still, the withdrawal was a milestone as Israel and Hamas marked six months of fighting. Military officials, speaking on condition of anonymity under army policy, said a significant force remained in Gaza to continue targeted operations including in Khan Younis, hometown of the Hamas leader, Yehya Sinwar.

AP video in Khan Younis showed some people returning to a landscape marked by shattered multistory buildings and climbing over debris. Cars were overturned and charred. Southern Gazas main hospital, Nasser, was in shambles.

Its all just rubble, a dejected Ahmad Abu al-Rish said. Animals cant live here, so how is a human supposed to?