Prime Minister Benjamin Netanyahu encountered opposition from several ministers during a cabinet meeting regarding a United States-backed proposal to build a 'model city' for Palestinians on the Israeli side of the Yellow Line in Gaza. The plan aims to separate Hamas from civilians, with residents being screened before moving into the new town. Ministers raised safety concerns about locating the city on the Israeli side, while Netanyahu suggested that an International Stabilization Force would first be deployed in the Mawasi coastal area controlled by Hamas.

Arab diplomats have indicated that the United States is seeking to deploy this force to disarm Hamas, though uncertainty remains about international willingness to contribute troops. United States officials are also working on a decommissioning and amnesty program for Hamas fighters that would avoid the use of force, but it is unclear if Hamas will accept these terms. During the meeting, Defense Minister Israel Katz proposed exiling Hamas operatives outside Gaza, a suggestion that was rejected by military leadership, who insisted that the fighters must surrender or face consequences.