Israeli ministers approved plans to expand the devastating war on Gaza on Sunday as the military continued to bombard the strip.
One official being quoted in Israeli media said that the plan involves the "conquering of Gaza and holding the territories".
The military last week called up tens of thousands of reservists as it prepares to invade new parts of the territory. More than two-thirds of Gaza is already either under displacement orders or has been incorporated into Israel's so-called 'security zones'.
The cabinet also approved a controversial plan to allow limited amounts of aid into Gaza "if necessary" amid a suffocating nine-week blockade.
The UN and humanitarian agencies have condemned the proposal, saying that it would enable Israel to weaponise aid delivery for military objectives and facilitate the further displacement of Palestinian civilians.
The cabinet meeting came as Israeli warplanes and drones continued to pound targets across the enclave.
At least 28 Palestinians have been killed in Israeli attacks since dawn on Monday, according to medical sources.