Israeli Prime Minister Benjamin Netanyahu has dismissed international calls for recognition of Palestinian statehood.

The move comes as the United States and Arab nations are urging Israel to accept a two-state solution between Israel and Palestine as a way to achieve peace.

At the beginning of a government meeting on Sunday, Netanyahu referred to "recent talk" in the international community about an attempt to unilaterally impose a Palestinian state on Israel.

He said such recognition, following the Hamas attacks on Israel in October, would reward terrorism.

The prime minister declared that Israel rejects outright such a proposal. He also said such an arrangement would be reached only through direct negotiations between the parties, without preconditions.

Meanwhile, Israeli Defense Minister Yoav Gallant said in a social media post on Sunday that Hamas is looking for a possible successor to Yahya Sinwar, the leader of the group.

He added that the Hamas brigade in Gaza's southern city of Khan Younis no longer functions as a military entity.

Israeli troops are continuing an operation against a hospital in Khan Younis and airstrikes across Gaza.

Health authorities in the enclave said on Sunday that 127 people had been confirmed killed over the previous 24 hours, raising the total death toll in the fighting to 28,985.