US Secretary of State Antony Blinken. AFP
The State Department said it could not confirm the report in the newspaper, which said that its analysis of satellite imagery showed stepped-up base construction accompanied by the demolition of more than 600 buildings in central Gaza, indicating a longer-term presence.
The State Department noted that Secretary of State Antony Blinken at the start of the war voiced opposition to a permanent Israeli presence in Gaza.
Asked about the accounts, State Department spokesman Vedant Patel said: "If they are true, certainly they would be inconsistent with a number of the principles that Secretary Blinken laid out."
"There cannot be any reduction in the territory of Gaza. Beyond that, there can also be no forced displacement of Palestinians from their homes," he told reporters.
The New York Times quoted an Israeli military spokesman who said that the expanded ground work was for operational reasons and that buildings could be quickly taken down.
President Joe Biden has supported Israel in its relentless brutal war in Gaza but has also voiced concerns about the plight of civilians.
President-elect Donald Trump has vowed overwhelming support for Israel once he takes over next month.
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