"If the hostages are not released, Israel will continue to take more and more territory in the Strip for permanent control," he concluded.
If Naftali Bennet decides to run, the coalition would be left with 49 seats, whereas a Bennet-led opposition would have 61.
According to the report, the Gazans would be allocated a city in the North of the Sinai Peninsula.
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Gachgoach was crucial to catching Palestinians cooperating with Israel, a key arena both for strategic and tactical conflicts between the sides.
The Netzarim corridor is an area the IDF withdrew from during the first phase of the ceasefire and is key to cutting off Gaza city from central Gaza.
A UN spokesperson said it's too early to determine who is responsible for the explosion at the accommodation sites housing the workers.