The Israeli government is considering a proposal to build an artificial island off the Gaza Strip that could provide its residents with a seaport and airport.
Minister of Intelligence Israel Katz told reporters that Israel was actively seeking partners to help fund the $5 billion project.
Mr Katz said Israel had no objection to easing the Gaza blockade as long as its security needs were met. Israel would supervise security on the island but it would otherwise be run by Palestinians and the international community.
"I do not think it is right to lock up two million people without any connection to the world," he said.
"Israel has no interest to make life harder for the population there. But because of security concerns we can't build an airport or seaport inside Gaza."
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