Israel says it is preparing to receive the bodies of four hostages held by Hamas in Gaza.
Israeli security officials also said they were working to bring back six living hostages on Saturday.
It comes after the Israeli army said it killed Mohammad Shaheen, the head of operations in Lebanon for Hamas, in the port city of Sidon.
Hamas confirmed Mr Shaheen’s death but described him as a military commander.
On Monday, Israeli forces also said they would remain in five strategic locations in southern Lebanon close to the border despite Tuesday’s deadline for a full withdrawal.
Israel had originally agreed to withdraw all its forces from southern Lebanon under its ceasefire agreement with Hezbollah, but said on Monday any such move must be done “in a way that the security of our civilians is kept”.
The initial withdrawal deadline was in late January, but Lebanon agreed to extend it to 18 February.
Lebanese president Joseph Aoun said the ceasefire agreement “must be respected,” claiming Israel “cannot be trusted”.
He said Lebanese officials were “working diplomatically to achieve the complete Israeli withdrawal, and I will not accept that a single Israeli remains on Lebanese territory”.
Giving reasons behind the latest drone strike, Israel accused Mr Shaheen of “recently planning terror attacks, directed and funded by Iran, from Lebanese territory against the citizens of the state of Israel”.
Footage showed a car engulfed in flames following the strike near a Lebanese army checkpoint and Sidon’s municipal sports stadium.
Lebanon’s state news agency said emergency teams had removed one body from the car, but did not identify the victim.
Since the ceasefire, Israel has continued air strikes in southern and eastern Lebanon, claiming it is targeting military sites containing missiles and combat equipment.
Israel and Lebanon have exchanged accusations of violating the ceasefire agreement.
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