The Hamas tunnel began below the Gaza Strip and went on for "several kilometres", well into Israeli territory, the IDF said.
The military destroyed the tunnel by pumping materials into it that render it useless and do not allow for reconstruction, Haaretz reported.
Former Defense Minister Moshe Ya'alon said that Israel is now the "world leader" in defending borders. It was also connected to a network of tunnels under Gaza, according to the IDF.
It was the fifth Gazan tunnel destroyed by Israel in recent months, Conricus said.
After destroying another terror tunnel over the weekend, the IDF revealed its strategy for neutralizing the underground pathways.
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Israel has faced criticism over its use of live fire along the Gaza border since March 30, while the European Union and United Nations chief Antonio Guterres have called for an independent investigation. The IDF says it is taking necessary action against people suspected of trying to damage the border fence or provide cover for Hamas attacks.
"The route of the terror tunnel was identified by security forces early on and monitored thereafter", the Israel Army said on Twitter.
Hamas yesterday denied reports that it has received a proposal offering for the European Union to run the Gaza Strip, Quds Press reported.
Israel has fought three wars with the Islamist movement Hamas since 2008, and the group has used tunnels to carry out attacks in the past.
It comes a day after another mass gathering along the border area in which thousands of Palestinians, some burning Israeli flags and torching tires, staged a protest against the ten-year-old blockade.
Local media had reported on Sunday that the European Union had proposed for Hamas to bear the responsibility for the humanitarian and economic situation in the Gaza Strip if the PA and Israel agreed to funnel the taxes to the European Union fund and Hamas agrees to a five-year truce with Israel.