The plan contradicts Washington’s vision for the beleaguered enclave and was immediately denounced as “colonialist and racist” by Palestinian officials.
The two-page paper was submitted for approval by the Israeli prime minister to his security council late on Thursday.
However, Palestinian authorities quickly rejected it, arguing that it contradicts Washington’s plan for the besieged region.
Tensions in the public sphere between Israel and its closest ally, the United States, have escalated due to disagreements over Gaza’s future.
As a step toward statehood and a two-state solution, the Biden administration is pursuing ultimate Palestinian sovereignty in Gaza and the Israeli-occupied West Bank. Mr. Netanyahu and his right-wing government vehemently opposes this goal.
According to Mr. Netanyahu’s plan, Gaza will be administered by Palestinians who have been hand-picked.