A rise in cross-border rockets and air strikes in recent weeks has prompted the United Nations and Egypt to try to broker a truce to prevent another all-out conflict.
Israeli Army Radio said the rocket was a long-range Grad capable of reaching Israel's heartland and that it hit an open area outside Beersheba.
Gaza, under years of grinding Israeli and Egyptian sanctions aimed at isolating Hamas, has seen a surge in tensions since Palestinians launched weekly border protests on March 30.
Netanyahu will convene his security cabinet on Sunday to discuss an emerging deal, brokered by the United Nations and Egypt, for long-term peace in Gaza.
Nabil Abu Rudeineh will serve as deputy prime minister and information minister, the government said.
The teenage attacker snuck into the settlement on Thursday evening, the Israeli army said, stabbing three people before being shot dead.
The military wing of Gaza's rulers Hamas on Thursday vowed revenge after Israeli strikes killed three militants in the latest flare-up of violence.
Israeli authorities say hundreds of fires have been started by firebombs since April.
A ceasefire announced by Hamas largely held Saturday after a wave of deadly air strikes across the Gaza Strip sparked by the death of an Israeli soldier shot near the border.