Israel is making plans for a potential major ground offensive in Gaza that would involve sending tens of thousands of troops into combat to clear and occupy large swaths of the enclave, an Israeli official and a second source familiar with the matter said.

Israel has reportedly killed 500 people with its renewed assault in Gaza, as its threats to Palestinian civilians take on an increasingly menacing tone.

Israel will take more territory in Gaza and fight until Hamas is wiped out if the Palestinian militant group keeps refusing to free remaining hostages, Israeli Defence Minister Israel Katz said on Tuesday.