Palestinians walk in a devastated neighbourhood in Beit Lahia in the northern Gaza Strip. AFP
The report follows US President Donald Trump's vow not to expel anyone from Gaza.
The sources added that Washington could modify the plan following discussions with concerned parties.
Egypt proposed an alternative to Trump's colonial plan for the US to cease Gaza and deport its Palestinian population, suggesting a $53 billion plan that would be carried out in three phases over 5 years. Arab countries unanimously backed the plan during the Extraordinary Arab Summit in Cairo in February. The Organization of Islamic States (OIS) and the EU also endorsed the plan.
The sources also revealed that the US has required that Egypt exclude individuals linked to Hamas from governing the Palestinian Strip and asked to review the names of those who will be responsible for managing Gaza in the future.
On Sunday, Egyptian Minister of Foreign Affairs Badr Abdelatty said Palestinian factions have consented to Egypt's proposal to form a non-factional technocratic committee to oversee Gaza as part of the newly ratified Arab-Islamic Gaza reconstruction plan.
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