Mr Levy was confirming Israeli media reports that the Israel Defence Forces had admitted using the wrong munition, but said he did not know what type was used.
“Any civilian deaths are regrettable,” he said, but stressed that in war it is “inevitable that mistakes will be made”.
Mr Levy reiterated that Israel’s war against Hamas would continue until the regime surrenders and releases the remaining hostages its militants took during its attack on 7 October.
Should Hamas surrender, the war could “end tomorrow”.
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0:53
Drone footage of Gaza destruction
IDF to ‘learn lessons’ from one of war’s bloodiest strikes
The strike on the Maghazi camp was one of the bloodiest of the conflict so far.
Footage taken by a Sky News team of the aftermath showed massive destruction, bodies dragged from beneath the rubble and the shrapnel-scarred faces of children in hospital.
Many of the dead included women and children.
The total number of people killed was reported by the UN, which Mr Levy has accused of “funnelling” civilians into “Hamas strongholds” rather than areas Israel has designated as safe.
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0:47
IDF: Soldier ‘made a mistake’ in Gaza
Israel has accused Hamas of using schools and hospitals to hide behind civilians – putting them in harm’s way.
But the Maghazi strike, which the IDF has pledged to “learn lessons” from, has added to criticism of Israel’s conduct.
The UN and human rights groups have said civilians are not being adequately protected, with Hamas health officials claiming more than 21,100 people have been killed in Gaza since the war began.