Israeli Prime Minister Benjamin Netanyahu has ordered a full military occupation of Gaza, escalating the conflict in the Palestinian territory amid efforts to secure the release of Israeli hostages.

Mr Netanyahu informed ministers on Monday (Tuesday AEST) that he plans to seek cabinet approval for the move, despite rising opposition from within the Israel Defence Forces and former military leaders, according to reports from The Times of Israel and Hebrew media.

A senior official close to Mr Netanyahu told Ynet, “The die is cast — we are going for a full occupation of the Gaza Strip.”

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Currently, Israeli forces control approximately 75 per cent of Gaza, but this new order would lead to the takeover of the remaining areas as operations intensify to rescue hostages believed to be held in those locations, reported the Jerusalem Post.

The decision reportedly came without consultation with the Israeli military’s chief of staff, Eyal Zamir, who was told to comply with the directive or resign, according to an internal memo.

This military escalation follows disturbing footage released by Hamas and its ally, Islamic Jihad, showing two Israeli hostages in visibly weakened states, deeply shocking Israel.

Of the 251 people taken during Hamas’s October 2023 assault on Israel, 49 remain captive in Gaza, including 27 who are presumed dead.

Footage showing Israeli hostage Evyatar David marking days on a calendar inside a Gaza tunnel confirmed his continued captivity. David, who turned 24 while in captivity, was abducted during the initial Hamas attack on October 7, 2023.

Senior Israeli officials who discussed the occupation plan alongside Mr Netanyahu believe Hamas will only release the remaining hostages if they are forced to surrender. Channel 12 quoted officials who said, “If we do not act now, the hostages will die of hunger and Gaza will remain under Hamas control.”

US President Donald Trump and Mr Netanyahu are reportedly coordinating to present Hamas with an ultimatum: release the hostages and disarm, or face a sustained Israeli military campaign.

This development comes as 19 retired Israeli leaders, including former prime minister and IDF chief Ehud Barak, issued a video appeal over the weekend urging Mr Netanyahu to end the war. They criticised the ongoing campaign, blaming the Prime Minister for prolonging the conflict to maintain his fragile right-wing coalition.

“We are on the precipice of defeat,” said former Mossad director Tamir Pardo, reflecting on the growing international outcry over the humanitarian crisis in Gaza.

“What the world sees today is of our own creation,” he added, referencing images of starvation and suffering among Gaza’s children.

Israeli Foreign Minister Gideon Saar emphasised that the focus should remain on the hostages at an upcoming United Nations Security Council session.

“The world must put an end to the phenomenon of kidnapping civilians. It must be front and centre on the world stage,” Mr Saar said at a press briefing. “I will head to New York tonight to participate in a special UN Security Council session that I initiated, taking place tomorrow (Tuesday) on the situation of the hostages,” he added.

The situation remains highly volatile as international and domestic pressures mount on Mr Netanyahu’s Government while Israeli forces move to complete their control over Gaza.