State-run National News Agency said the air strike early on Saturday targeted a home on the edge of the village of Ansar and that paramedics were still searching through the rubble.
Lebanon's health ministry later said the seven killed included three children and two women.
It said two people were wounded in the air strike on Ansar after state media earlier reported that three people were wounded.
Israel and the Lebanese government announced a "framework agreement" on June 26, laying out a plan for Israeli forces to withdraw from southern Lebanon, in exchange for the disarmament of the Iran-backed Hezbollah militant group.
It also envisions steps towards an eventual peace agreement between the two countries, which technically remain in a state of war nearly 80 years after Israel's establishment.
Hezbollah has refused direct talks and was not party to the deal.
Intense Israeli air strikes on Saturday also hit the strategic Ali Taher hill, which overlooks parts of the southern city of Nabatiyeh and main roads leading to it, NNA reported.
Despite the truce, Israel's military has continued its almost daily attacks on the area, which is north of the Litani River and has been a de facto boundary in Lebanon, with large areas to the south under Israeli military control.
The Israeli military said it struck Hezbollah infrastructure in the areas of Ali Taher and Ansar in response to an action against Israeli soldiers in the area.
The military said it would not allow the Hezbollah to harm Israeli civilians or soldiers "and will continue to operate to remove threats".
A Hezbollah official did not immediately respond when asked for comment on whether they carried out any attacks on Israeli forces in southern Lebanon.
Earlier in August, two Israeli soldiers were killed in an explosion in southern Lebanon, the first Israeli deaths since the shaky truce.
Hezbollah did not comment on the blast.
Lebanon and Israel have held seven rounds of talks; the most recent took place in Rome earlier in August.
The Iran-backed Hezbollah has refused to disarm and accused the Lebanese government of making too many concessions without guaranteeing an Israeli withdrawal.
The latest Israel-Hezbollah war erupted on March 2, when Hezbollah fired rockets across the border two days after the US and Israel launched their attacks on Iran.
More than 4000 people have been killed by Israeli strikes in Lebanon since then, including hundreds of civilians.
About 40 soldiers and three civilians - including a military contractor - have been killed on the Israeli side.
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