JERUSALEM - German Chancellor Friedrich Merz on Sunday called for moving forward to the second phase of the Gaza ceasefire, speaking alongside Israeli Prime Minister Benjamin Netanyahu during a visit to Israel.

"We need to implement the second phase of the peace plan," Merz said during a joint statement after the two leaders met. The plan, proposed by US President Donald Trump, calls for the release of Israeli and Palestinian hostages and detainees and the creation of an interim technocratic Palestinian administration in Gaza, overseen by an international "Board of Peace" and backed by an international security force.

"Hamas cannot have a role in Gaza. It cannot pose a threat to Israel," the German chancellor added.

Netanyahu said he would hold "very important conversations at the end of the month" on the steps needed to ensure the second phase is achieved, adding that he would meet Trump later in December to discuss peace opportunities and an end to Hamas's rule in Gaza.

Netanyahu said the first phase of the ceasefire was close to completion.

"We have a plan for a new Middle East in which Israel will be part of it alongside the establishment of a Palestinian state," Merz said. He added that a two-state solution would come only after negotiations, saying this was why Germany "supports the Palestinian Authority but also criticizes it".

Merz said it was too early to know how the plan would unfold, and that this uncertainty was one reason Germany had not recognized a Palestinian state. "We will not take that step in the foreseeable future either, because such a state currently lacks the conditions needed to function as an independent country," he said.

Asked whether he planned to invite Netanyahu to Germany despite an international arrest warrant issued for the prime minister by the International Criminal Court, Merz said the possibility of such a visit had not been discussed. He also said he does not support European sanctions on Israel.

Netanyahu dismissed the possibility of Palestinian statehood. "We have a different point of view," he said, arguing that a Palestinian state would threaten Israel's existence.

But he voiced hope for further normalization agreements with Arab countries. "We believe there's a path to advance broader peace with the Arab states, and a path to establish a workable peace with our Palestinian neighbors, but we're not going to create a state committed to our destruction at our doorstep," he said.

Earlier in the day, Merz and Netanyahu joined an expanded meeting with Defense Minister Israel Katz and Foreign Minister Gideon Sa'ar. Merz also visited the Yad Vashem Holocaust memorial in Jerusalem and met President Isaac Herzog.

Merz's visit comes weeks after Germany lifted a partial embargo on weapons exports to Israel.