Residents of Gaza will not be forcibly relocated and President Donald Trump would lead a transitional authority under a peace plan unveiled by the White House on Monday.
The proposal, which Trump has already shared with Arab leaders, was made public during his meeting with Israeli Prime Minister Benjamin Netanyahu, although there was no immediate indication that Netanyahu had accepted it.
Trump, ahead of his meeting with Netanyahu, said he was "very confident" about the chances of a Gaza deal.
He repeated "very confident" when asked if all parties were on board with the 21-point plan to end the nearly two-year war, free hostages held by Hamas and disarm the Palestinian militants.
The US president met key Arab leaders at the United Nations last week and said Sunday on social media that "ALL ARE ON BOARD FOR SOMETHING SPECIAL, FIRST TIME EVER."
But Netanyahu has given little reason for optimism, vowing in a defiant UN speech Friday to "finish the job" against Hamas and rejecting Palestinian statehood -- recently recognized by several Western nations.
Trump's plan, according to The Times of Israel and US news site Axios, calls for an immediate ceasefire, a phased Israeli withdrawal and the release of hostages within 48 hours.
Israel would then free more than 1,000 Palestinian prisoners, including several serving life terms.
Normally a staunch ally of Netanyahu, the US president has shown increasing signs of frustration ahead of the Israeli premier's fourth White House visit since Trump's return to power.
Trump was infuriated by Israel's recent strike on Hamas members in key US ally Qatar.
And he warned Netanyahu last week against annexing the Israeli-occupied West Bank, as some of Netanyahu's cabinet members have urged, a move that would seriously complicate the route to Palestinian statehood.
Netanyahu's coalition government is propped up by the far-right ministers who oppose a peace deal.
The path to a deal remains strewn with pitfalls.
Both Israel and the Arab states are still quibbling with the wording of key parts of the peace plan, including the role any international force and of the Ramallah-based Palestinian Authority in post-War Gaza.
"The likelihood of... a reformed Palestinian Authority that changes completely its stripes, that accepts a Jewish state... well, good luck," Netanyahu told Fox News in an interview Sunday.
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