The body of a second Israeli hostage found near the Al-Shifa hospital has been recovered, Israel has said, as Benjamin Netanyahu claimed to have intelligence that captives were held at the facility.

Hamas claimed Corporal Boa Marciano was killed in an Israeli bombardment.

Corporal Noa Marciano was abducted by Hamas militants when they overran her IDF base during the Oct 7 massacre.

The 19-year-old’s death was announced earlier this week, with Hamas claiming she had been killed in an Israeli bombardment.

Troops have also located the body of Yehudit Weiss in a building near Al-Shifa’s medical centre compound, according to the Israel Defense Forces.

The IDF said troops from its 7th Armoured Brigade’s 603rd Battalion found her remains near military equipment such as assault rifles and RPGs belonging to Hamas.

In a defiant interview on Friday, Mr Netenyahu said the apparent presence of hostages at Al-Shifa was one of the reasons for raiding the complex, which has triggered diplomatic concern.

The prime minister told CBS Israel had “strong indications” hostages were present and cited “intelligence”, but added: “The less I say about it the better.”

Members of Cpl Marciano’s family had taken part in a march with the relatives of other hostages with the aim of putting pressure on the government to prioritise their rescue over defeating Hamas.

The teenage soldier was the first hostage to be confirmed to have died in captivity.

An IDF spokesman said on Friday: “The body of IDF soldier Corporal Noa Marciano, who was abducted by the Hamas terrorist organisation, was extracted by IDF troops from a structure adjacent to the Shifa Hospital in the Gaza Strip and was transferred to Israeli territory.

“Following an identification process that was conducted by military medical and rabbinate personnel, yesterday (Thursday), IDF representatives informed her family that her body was extracted and returned to Israeli territory.

“The IDF sends its heartfelt condolences to the family and will continue to support them.”

On Friday, Corporal Marciano’s funeral was held in the central city of Modi’in, with the soldier’s mother seen weeping over her coffin draped in the flag of Israel.

On Thursday night, the IDF said it had discovered a tunnel shaft used by Hamas militants at Al Shifa.

The army released a video it said showed a tunnel entrance in an outdoor area of Al Shifa, Gaza’s biggest hospital.

The video, which could not be verified, showed a deep hole in the ground, littered with and surrounded by concrete and wood rubble and sand. It appeared the area had been excavated; a bulldozer appeared in the background.

The IDF has not yet released concrete evidence of a Hamas headquarters at the hospital, a claim made earlier this month as they targeted the compound.

On Friday, Israeli troops carried out building-by-building searches at Al-Shifa, as a fresh communications blackout in the territory further heightened fears for Palestinian civilians trapped in the grounds.

Thick dark smoke could be seen rising over the northern area of the enclave on Friday.

Al-Shifa hospital has become a focal point for Israeli operations in northern Gaza since soldiers raided the complex on Wednesday, hunting for a command centre they say Hamas operates there.

Mr Netenyahu also said on Friday that Israel had “concrete evidence” on the use of the hospital for military purposes.

Hamas and hospital managers deny the charge, and there has been international concern about several thousand people - including wounded patients and premature babies - believed to be trapped inside.