Israeli ministers have approved a plan to capture all of Gaza and remain there, the Associated Press reported two officials as saying.

This comes after Israel's Security Cabinet on Monday unanimously approved a plan to expand its ongoing military onslaught on Gaza and occupy territories inside the enclave.

In a statement, Prime Minister Benjamin Netanyahu's office said the Cabinet approved "the operational plan" submitted by army chief Eyal Zamir to "defeat Hamas" and return Israeli captives held in Gaza.

According to the statement, the plan requires the army "to conquer Gaza and hold the territory under its control".

Israeli Channel 12 said the plan also includes the forcible relocation of Palestinians from northern Gaza to the south.

There was no immediate Palestinian comment on the Israeli plan.

The Israeli military has already begun issuing tens of thousands of call-up orders for its reserve forces, looking to expand the assault in Gaza, army chief Lieutenant General Eyal Zamir said in a statement on Sunday.

Israel resumed its offensive in Gaza in March after unilaterally breaking a US-backed ceasefire that had halted fighting for two months.