Israeli Prime Minister Benjamin Netanyahu has reportedly criticised the military’s proposal to construct a so-called “humanitarian city” in Rafah, warning that the project could take up to a year to complete and would cost billions.

During a closed-door security cabinet meeting on Sunday, Netanyahu and several ministers dismissed the Israeli army's timeline as unrealistic, according to a source cited by Haaretz.

Israeli officials estimate that building a so-called “humanitarian city” in Rafah could cost between $2.7bn and $4bn, according to Israeli media outlet YnetNews.

The proposed concentration camp which would hold up to 500,000 displaced Palestinians, has been widely denounced by rights groups as a form of forced displacement and ethnic cleansing. Critics say the plan amounts to corralling civilians into a zone they would be barred from leaving, with no return to northern Gaza allowed.