An Israeli airstrike on Wednesday killed at least three Palestinians in Tubas in the occupied West Bank, Palestinian Red Crescent said, adding there were also a number of injuries reported.

Egypt will not participate in the displacement of Palestinians, an "act of injustice" that would threaten Egyptian security, President Abdel Fattah Al-Sisi said on Wednesday in his first public response to U.

The president expanded on a controversial idea that was rejected by the Arab states and would represent a significant shift in U.S. policy.

After a ceasefire deal paused 15 months of war in Gaza, hundreds of thousands of Palestinians returned to the rubble of their homes.

The Palestinian Health Ministry says two Palestinians were killed by Israeli fire in the occupied West Bank overnight and into Wednesday.

Israel on Monday began permitting thousands of Palestinians to return to the devastated northern Gaza Strip for the first time since the early weeks of the 15-month conflict between Israel and the militant group Hamas. The move comes as part of a fragile ceasefire agreement currently in place.

Thousands of Palestinians are returning to the northern Gaza Strip Monday as part of the cease-fire and hostage release deal between Israel and Hamas.

Asked for a reaction to Trump's comments, a foreign ministry spokesperson said Berlin shared the view of "the European Union, our Arab partners, the United Nations ... that the Palestinian population must not be expelled from Gaza and Gaza must not be permanently occupied or recolonised by Israel."

Israel and Hamas were set to carry out their third hostage-prisoner exchange on Thursday, with three Israelis and five Thai captives slated for release as part of a ceasefire deal aimed at ending the Gaza war.

Israeli authorities said they would stop working Thursday with the main United Nations agency caring for Palestinian refugees, threatening aid deliveries for Gaza that are a key part of the cease-fire deal.

Trump over the weekend told reporters that Egypt and Jordan should take in Palestinians from war-torn Gaza, an idea that has long been rejected by those countries and the Palestinians themselves because they say it would undermine the notion of Palestinian statehood and foment instability in their states.