Israeli Defence Minister Israel Katz has ordered the preparation of a huge camp to house 600,000 displaced Palestinians in southern Gaza, DPA reports.

Katz said the move was aimed at weakening the Palestinian terror group Hamas' hold over the population in the blockaded coastal territory.

The minister said plans were being developed for a "humanitarian city" on the ruins of Rafah, which has been largely destroyed in the ongoing war.

The new camp would house hundreds of thousands of Palestinians currently living in tents in the Al-Mawasi area.

Katz said the camp would be built during the 60-day ceasefire that Israel and Hamas are negotiating.

The area would be run by unspecified "international partners" and the Israeli military would provide security only.

Those entering the camp will go through a security check to prevent Hamas militants from infiltrating the area.

Katz also said the camp would facilitate plans for Palestinian residents to leave Gaza, which critics say amounts to forced displacement.

The Israeli government has repeatedly declared its intention to push for the "voluntary" emigration of the vast majority of the local population.

Just over 2 million people live in the territory, most of whom have lost their residency during the conflict.

No country in the world has declared its willingness to accept Palestinians

Radical forces in Israel, including some ministers in Prime Minister Benjamin Netanyahu's government, openly discuss the forced deportation of Gaza's population and the establishment of Jewish settlements in the area. | BGNES