Israel's security cabinet has approved a plan to expand its military offensive against Hamas which includes the "capture" of Gaza and the holding of its territory, according to an Israeli official, BBC reported.

Prime Minister Benjamin Netanyahu said the cabinet had decided on a "forceful operation" to destroy Hamas and rescue its remaining hostages, and that Gaza's 2.1 million population "will be moved, to protect it".

He did not say how much territory would be seized by troops, but he stressed that "they will not enter and come out".

The cabinet also approved, in principle, a plan to deliver aid through private companies, which would end a two-month blockade the UN says has caused severe food shortages, according to BBC.