Washington has reportedly offered to unfreeze billions in funds belonging to the North African state if it accepts residents of Gaza

The administration of US President Donald Trump is working on a plan to permanently relocate up to 1 million Palestinians from Gaza to Libya, NBC has reported, citing informed sources. The White House has denied the claim.

Since taking office in January, Trump has repeatedly said that the US is prepared to take control of Gaza and transform it into a resort on the Mediterranean Sea. The idea has faced strong opposition from other nations in the region, who argue that such plans violate international law, threaten regional stability, and undermine the rights of Palestinians to remain on their ancestral lands.

The plan to relocate around a half of Gaza's population to Libya is under "serious" consideration in the White House, the broadcaster claimed in an article on Friday.

According to the sources, in exchange for Libya accepting the Palestinians, the Trump administration could be ready to unfreeze some $30 billion in funds belonging to the North African state that were blocked a decade ago.

The NBC report said that Washington had already discussed the idea with the Libyan leadership, although it did not specify which of the country's rivaling governments it was.

Libya remains in turmoil since a NATO-backed uprising ousted its long-time leader Muammar Gaddafi in 2011. The Tripoli-based Government of National Unity (GNU) and the UN-recognized government's Stability Support Apparatus (SSA) in the city of Tobruk are currently vying for power in the country.

The head of the head of SSA government, Abdulghani al-Kikli, also known as Ghaniwa, was assassinated this past Monday, which led to clashes in Tripoli. The US State Department advises American citizens against traveling to Libya "due to crime, terrorism, unexploded landmines, civil unrest, kidnapping, and armed conflict." 

Israel is being informed about the discussion between the US and Libya, the sources said.

No final agreement on moving Palestinians has been reached, according to NBC, which added that details about when or how the plan could be implemented remain "murky." 

READ MORE: Recognizing Palestine could be one of Trump's most pro-Israel moves yet

A Trump administration spokesman has said that the report by NBC was "untrue." The spokesman stressed that the "situation on the ground [in Libya] is untenable for such a plan. Such a plan was not discussed and makes no sense."