The evacuation followed another day of bloodshed in Gaza in which an Israeli air strike on Tuesday killed about 50 people in a refugee camp, according to Palestinian health officials.
Israel said the attack killed a senior Hamas commander and many other combatants.
Palestinian residents said Israeli forces bombed and shelled Gaza by land, sea and air throughout the night, inflicting scores more casualties among the civilian population.
Israel sent its forces into Hamas-controlled Gaza following weeks of air and artillery bombardments in retaliation for a deadly attack by the Islamist group on southern Israel on Oct 7.
Israel has vowed to wipe out Hamas. But the civilian death toll in Gaza and the desperate humanitarian conditions have caused great concern across the world as food, fuel, drinking water and medicine run short and hospitals struggle to treat casualties.
About 200 people were waiting at the Palestinian side of the border on Wednesday morning, the source said.
A second source said not all were expected to make it out on Wednesday. There was no timeline for how long the crossing will remain open for evacuation, they added.
A Western official said a list of people with foreign passports who can leave Gaza had been agreed between Israel and Egypt and relevant embassies have been informed. An Israeli official who requested anonymity confirmed that Israel was coordinating the exits with Egypt.
Egypt has prepared a field hospital in Sheikh Zuwayed in the Sinai, medical sources said. Ambulances could be seen waiting at the Rafah crossing.
The first source said this deal, however, was not linked to other issues, such as the release of about 240 hostages held by Hamas or a “humanitarian pause” in the fighting which many countries have called for but which Israeli Prime Minister Benjamin Netanyahu has rejected.
Indonesia said it was trying to get out 10 nationals but three of them, volunteers at an Indonesia-run hospital, have decided to stay. The Philippines said that two Filipino doctors with Doctors Without Borders NGO were among those leaving Gaza.
Jordan and Italy also said they hoped to bring their citizens out on Wednesday.
The Hamas attack on southern Israel on Oct 7 killed about 300 soldiers and some 1,100 civilians, Israeli figures say.
The Gaza health ministry said on Wednesday that at least 8,796 Palestinians, including 3,648 children, have been killed in Israeli strikes on Gaza since Oct 7.
Source: CNA
