Gaza City, Gaza - Israel's military will "take control" of Gaza City under a new plan approved by Prime Minister Benjamin Netanyahu's security cabinet, sparking global outcry.

Hamas denounced the plan to expand the assault as a "new war crime," while staunch Israeli ally Germany took the extraordinary step of halting military exports out of concern they could be used in Gaza.

Under the newly approved plan, the Israeli army "will prepare to take control of Gaza City while distributing humanitarian assistance to the civilian population outside combat zones," the premier's office said Friday.

Before the decision, Netanyahu – who is wanted by the International Criminal Court – had said Israel planned to seize complete control of the Gaza Strip, but did not intend to govern it.

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"We don't want to keep it," the premier told Fox News on Thursday, adding Israel wanted a "security perimeter" and to hand the Palestinian territory to "Arab forces that will govern it properly without threatening us."

Israel occupied Gaza from 1967, but withdrew its troops and settlers in 2005.

Netanyahu's office said a majority of the security cabinet had adopted "five principles," including demilitarization of the territory and "the establishment of an alternative civil administration that is neither Hamas nor the Palestinian Authority."

The new plan triggered swift criticism from across the globe, with China, Turkey, the UK, and the UN's rights chief issuing statements of concern.

In a major shift, German Chancellor Friedrich Merz announced his country was halting military shipments to Israel, saying it was "increasingly difficult to understand" how the new plan would help achieve a ceasefire and the release of Israeli hostages.

"Under these circumstances, the German government will not authorize any exports of military equipment that could be used in the Gaza Strip until further notice," he said.

Reactions in Israel were more mixed.

Israeli opposition leader Yair Lapid denounced the cabinet's move as "a disaster that will lead to many other disasters."

He warned on X that it would result in "the death of the hostages, the killing of many soldiers, cost Israeli taxpayers tens of billions, and lead to diplomatic bankruptcy."

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The main campaign group for hostages' families also slammed the plan, saying it amounted to "abandoning" the captives.

"The cabinet chose last night to embark on another march of recklessness, on the backs of the hostages, the soldiers, and Israeli society as a whole," the Hostage and Missing Families Forum said.

An expanded Israeli offensive could see ground troops operate in densely populated areas where hostages are believed to be held, local media have reported.

Other Israelis, meanwhile, offered their support.

"As they take control of Gaza, they will eliminate Hamas completely – maybe not completely, but at least a good percentage of them," said Chaim Klein, a 26-year-old yeshiva student.

The Israeli army said last month that it controlled 75% of the Gaza Strip, mainly from its positions in the territory along the border.

Out of 251 hostages captured during Hamas's 2023 attack, 49 are still being held in Gaza, including 27 the military says are dead.

Gaza residents said they feared for the worst, as they braced for the next onslaught.

"They tell us to go south, then back north, and now they want to send us south again. We are human beings, but no one hears us or sees us," Maysa al-Shanti, a 52-year-old mother of six, told AFP.

Hamas on Friday said the "plans to occupy Gaza City and evacuate its residents constitutes a new war crime." It warned Israel that the operation would "cost it dearly," and that "expanding the aggression means sacrificing" the hostages.

International concern has been growing over the suffering of Palestinians in Gaza, where a UN-backed assessment has warned that famine is unfolding.

The World Health Organization said at least 99 people have died from malnutrition in the territory this year, with the figure likely an underestimate.

In late July, Israel partially eased restrictions on aid entering Gaza, but the United Nations says the amount allowed into the territory remains insufficient as the near-total blockade continues.

Amjad Al-Shawa, head of the Palestinian NGO Network in the Gaza Strip, told AFP that lengthy inspection procedures at entry points meant few trucks could come in – "between 70 to 80 per day – carrying only specific types of goods."

The UN estimates that Gaza needs at least 600 trucks of aid per day to meet residents' basic needs.

Israel has slaughtered at least 61,258 Palestinians in Gaza since October 2023, according to the territory's health ministry, though the true number is believed to be far higher.