The plan was presented by US officials at the World Economic Forum in Davos this week, where it was outlined as part of a broader discussion on post-war reconstruction and long-term stability in Gaza.
Speaking during a so-called '40-signature debate', Netanyahu put up a strong defence of his government's policy on various fronts, including Israel’s foreign relations.
Israel still carries out strikes in response to what it has called violations of the truce, and bodies from earlier in the war are being recovered from the rubble.
On Saturday, Israeli settlers staged two attacks on Palestinian farmers, paramedics, activists and journalists in the occupied West Bank as settler violence reaches new highs in the territory.