Gaza's ruling group can keep fighting and is prepared for a long war in Rafah and Gaza, said the official, who requested anonymity.
A senior regional security official said Israel believed some Hamas commanders and hostages were in Rafah.
UK Foreign Secretary David Cameron also told lawmakers that Britain and its allies "will look at the issue of recognising a Palestinian state, including at the United Nations".
Yet for Netanyahu and many other Israeli officials, talk of a two-state solution amounts to a betrayal of the people killed on Oct. 7.
"I say clearly to anyone still stuck in October 6: We will never lend a hand to the creation of a Palestinian state," Israeli Culture Minister Miki Zohar said on social media last month.
Persons:
Samia Nakhoul, Jonathan Saul, Humeyra Pamuk, Benjamin Netanyahu's, Avi Melamed, Yoav Gallant, Joe Biden, Netanyahu, Biden, Gaza's, hasn't, Israel . Fighting, Khan Younis, Emad Joudat, Gallant, Israel, Yahya Sinwar, Antony Blinken, Washington, David Cameron, Britain haven't, Miki Zohar, Dan Williams, Nidal Al Mughrabi, Andrew Hay, Jeff Mason, Pravin Char
Organizations:
Humeyra Pamuk DOHA, Reuters, Military, Israel Defense Forces, Hamas, Israeli, America, . Senior, Palestinian Authority, State Department, Israel, United Nations
Locations:
Israel, Gaza, Rafah, Washington, Qatar, RAFAH, Hamas, Khan, Gaza City, Egypt, Cairo, U.S, Palestinian, Britain, Palestine, Doha, London, Jerusalem