Israeli Prime Minister Benjamin Netanyahu said on Tuesday that Israel must "complete" the defeat of Hamas to free hostages held in Gaza, a day after Israeli media reported the army could occupy the entire territory.

The plans to fully occupy Gaza run counter to the wishes of the international community, placing obstacles to the two-state solution championed by the United Nations, experts say.

"It is necessary to complete the defeat of the enemy in Gaza, to free all our hostages and to ensure that Gaza will no longer pose a threat to Israel," Netanyahu said during a visit to an army training facility on Tuesday.

On Monday, Netanyahu reiterated Israel's "war objectives", and said he would direct the Israel Defense Forces to achieve these objectives "without exception".

His decision will see the Israeli military expand its operations across the entire Palestinian enclave, including areas where Hamas' captives are being held, The Jerusalem Post and Channel 12 reported.

Ayman Yousef, a professor of international relations at the Arab American University in Jenin, West Bank, said Netanyahu is "trying to put his agenda and his propaganda in this direction" as he is "in crisis".The Israeli army failed to rescue all hostages despite destroying almost all of Gaza through military action, and the political track is also in deadlock at this stage, he said.

"There is growing pressure inside Israel, not only from the families of Israeli prisoners and Israeli opposition forces, but there are some protests even from the Israeli army itself, from the security apparatus, from Israeli media," Yousef said.

A group of about 600 Israeli security officials, including former intelligence agencies' heads, had earlier written to United States President Donald Trump, urging Israel to immediately end the fighting.

'Professional judgment'

"It is our professional judgment that Hamas no longer poses a strategic threat to Israel," the officials were quoted as saying.

International pressure is mounting on Israel to observe UN resolutions and end Gaza attacks, including from the European Union and within the US administration; so is "great resentment" from other parts of the world over the killing and starvation of Palestinians in Gaza, a majority of whom are women and children, including civilians such as aid workers and journalists.

On Tuesday, Australia's Minister for Foreign Affairs Penny Wong told journalists that "there is a risk there will be no Palestine left to recognize", while responding to questions about a mass protest in Sydney attended by about 100,000 people rallying against Israel's war on Gaza.

On Australia's position regarding Palestinian statehood, Wong said: "In relation to recognition, I've said for over a year now, it's a matter of when, not if."

Also on Tuesday, Israel's Coordination of Government Activities in the Territories announced that a mechanism was approved for the gradual and controlled renewal of entry of goods through the private sector in Gaza, citing the Israeli cabinet's decision to expand the scope of humanitarian aid.

"This aims to increase the volume of aid entering the Gaza Strip, while reducing reliance on aid collection by the UN and international organizations," said the agency.

But only 95 aid trucks entered Gaza on Monday, Hamas said in a statement, far below the minimum 600 trucks per day needed to meet the basic humanitarian needs, according to the United Nations Relief and Works Agency for Palestine Refugees in the Near East.

The office has warned of an intensifying humanitarian catastrophe, accusing Israel of deliberately restricting aid in the territory.

Al Jazeera reported on Tuesday that in the southern part of the Gaza Strip, Israeli ground operations concentrated around the eastern and central areas of Khan Younis with Palestinian factions and Israeli forces trading fire.

Israel's ground campaign was accompanied by "very heavy fire" from its air force and also from Israeli artillery units that continued to pound the al-Mawasi area. At least five Palestinians were killed in the attack.

Xin Xin in Sydney and agencies contributed to this story.