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The Palestinian militant group and political party Hamas claimed that the drone was shot down and seized.
Israel has said that a drone that crash landed in Gaza on Sunday was not shot down by militants.
The Palestinian militant group and political party Hamas claimed that the Israeli military's unmanned aircraft was shot down and seized.
Israel countered that claim, saying that it was a technical error that brought down the unmanned aircraft and the incident was being investigated.
Israel uses drones to carry out intelligence operations and sometimes attacks over the Gaza strip.
"IDF clarifies, in contradiction to Palestinian reports, that a 'Skylark' tactical mini UAV system crashed earlier today in the Gaza Strip due to a technical malfunction, and was not shot down by Palestinian militants," an IDF spokesperson told the BBC.
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It was said to be seized by Hamas' military wing, the Izz al-Din Qassam Brigades in the northern Gaza strip near the town of Jabaliya.
Last May, another Israeli drone crashed near Gaza but was quickly recovered by Israeli troops.
Skylark-type drones are used by militaries around the world and are used for reconnaissance missions.
Israel is one of the largest manufacturers of drones in the world.