He said Israel would have no choice but to reoccupy Gaza, from which it withdrew all troops and settlers in 2005, after the militant strikes- biggest wave of attacks in 16 months.
"I do not think we can ignore such an attack, a salvo of 50 rockets. My views are known and clear. After Operations Cast Lead and Pillar of Defence, there is now no other choice but complete occupation of the Gaza Strip, and cleaning house there," Lieberman told Channel 2.
"There are many terror hideouts and thousands of rockets in the Strip, and every day (terror organisations in Gaza) increase weapons smuggling and self-production of bombs, and this is why we need to put an end to it," Lieberman said.
The Islamic Jihad's military wing claimed responsibility for the rocket fire, saying it was in response to an air strike on Tuesday that killed three of its militants in southern Gaza.
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The militant faction, which claimed to have fired 90 rockets, took advantage of the stormy weather when the Israel Defence Forces' ability to identify and intercept rocket fire is lower.
The Israeli Foreign Minister said: "The Islamic Jihad is sending a message to Cameron, who visited the Knesset today and gave a speech in favour of an agreement between us and the Palestinians - 'we are on the map, and we will stop any agreement between Israel and the Palestinians'."
The British Premier strongly condemned the rocket fire calling it "barbaric".
"Let me absolutely clear about these attacks from Gaza, we condemn them completely," Cameron said during a press conference with Israel's President Shimon Peres.