US could be planning to deport up to 1 million Palestinians from Gaza to Libya

The Trump administration may be working on a plan to displace as many as 1 million people from Gaza and permanently resettle them in war-torn Libya.

US officials allegedly opened talks with Libyan authorities about the plan, which could see the US release billions of dollars of Libyan assets frozen in 2011, NBC News reported Friday, citing five people with knowledge of the matter.

It is also considering providing financial incentives such as free housing and a stipend in a bid to persuade them to leave the territory, according to one former US official.

The two sides have not reached a final agreement on the matter, three of the sources said, adding that Israel is being kept abreast of the discussions.

A spokesperson denied the discussions had taken place when approached for comment by NBC.

"The situation on the ground is untenable for such a plan. Such a plan was not discussed and makes no sense," the spokesperson said.

A senior Hamas official told the broadcaster that the group was not aware of the discussions.

"Palestinians are very rooted in their homeland, very strongly committed to the homeland and they are ready to fight up to the end and to sacrifice anything to defend their land, their homeland, their families, and the future of their children," said Basem Naim.

He continued: "[Palestinians] are exclusively the only party who have the right to decide for the Palestinians, including Gaza and Gazans, what to do and what not to do."

Libya has been marred by violence since the country's autocratic ruler Muammar Gaddafi was overthrown 14 years ago.

Rival governments in Tripoli and Benghazi have fought for control of the country in a long civil war and warring militias continue to cause instability.

Renewed clashes between rival factions killed 58 people in the capital this week triggered fears that the country is sliding back to civil war.

Since entering office in January, the Trump administration has backed the Israeli government's ambition to remove the Palestinian population from Gaza and has reportedly held talks with several countries about resettling them.

Egypt and Jordan faced down pressure from the administration to open their borders to Palestinian refugees. Unconfirmed reports suggest the US and Israel have approached Sudan, Morocco, Syria and Somaliland.

The Trump administration is still considering resettling Palestinians in Syria, according to two of NBC's sources.

The US is moving towards restoring diplomatic ties with the Arab state. In a surprise announcement this week, Trump ordered the removal of US sanctions on Syria and met with the country's interim president Ahmed al-Sharaa in Saud Arabia.

The deportation of Palestinians from Gaza is part of the Trump administration's vision for post-war Gaza.

The US president in February proposed a US "takeover" of the Palestinian territory, which he said would be rebuilt into a luxury international tourist destination.

Trump reiterated his ambition to "take" Gaza in an interview on Thursday, saying that it would be turned into a "freedom zone" under US leadership.