The United Nations and major groups currently running aid operations in Gaza, briefed by Israel on the plans, said they would not cooperate with the plans.
Occupying Gaza and establishing military rule there would go beyond Israel's stated war goals to end Hamas rule and free hostages captured in the Oct. 7, 2023, attack.
The report is the Israeli military's first official account of mistakes that preceded the 2023 attack, which launched Israel's subsequent war against Hamas in Gaza that killed more than 48,000 Palestinians.
Crowds gathered in Israel for the funeral procession of the Bibas family, a mother and two young sons killed while being held hostage in Gaza. The story of their killing has enraged Israelis, and Israeli government representatives were not invited to the funeral.
Hamas says it has agreed to Israel's request to speed up release of Israeli hostages, including two men held around a decade. The bodies of members of a young family are among those it will hand over.
It wasn't immediately clear what legal authority Trump would have to execute his proposals, and they would likely be met by fierce resistance from Palestinians and from regional Arab countries.