An Israeli scheme to move hundreds of thousands of already uprooted Palestinians to a so-called "humanitarian city" in Gaza has led politicians to spar with the defence establishment, but officials say a practical plan has yet to be crafted.

A planned “humanitarian city” inside Gaza intended to hold hundreds of thousands of Palestinians would be a “concentration camp,” former Israeli Prime Minister Ehud Olmert has warned.

Prime Minister Ehud Olmert warned that the proposed “humanitarian city” in Gaza would amount to a concentration camp and risk ethnic cleansing. The plan, pushed by Defence Minister Israel Katz, has sparked fierce criticism and threatens to derail Israel-Hamas truce efforts.

Foreign ministers from the EU's 27-member nations are meeting in Brussels in the wake of a new aid deal for Gaza, largely forged by the bloc's foreign policy chief Kaja Kallas and Israeli Foreign Minister Gideon Saar.

Since the EU deal was announced last Thursday, scores of people including children have been killed by Israeli forces while seeking aid from the Israel-backed Gaza Humanitarian Foundation. Kaag said that the EU must not fall into a trap of seeing aid as a bargaining chip, rather than a fundamental human right.