Since resuming military operations last month, Israeli forces have carved out a broad "security zone" extending deep into the Gaza Strip and squeezing more than two million Palestinians into ever smaller areas in the south and along the coastline.
"Unlike in the past, the IDF is not evacuating areas that have been cleared and seized," Katz said in a statement following a meeting with military commanders.
"The IDF will remain in the security zones as a buffer between the enemy and the communities in any temporary or permanent situation in Gaza - as in Lebanon and Syria."
In a summary of its operations over the past month, the Israeli military said it now controls 30 per cent of the tiny Palestinian territory.
In the south of the enclave, Israeli forces have seized the border city of Rafah and pushed inland up to the so-called "Morag corridor" that runs from the eastern edge of the Gaza Strip to the Mediterranean Sea, between Rafah and the city of Khan Younis.
It already held a wide corridor across the central Netzarim area and has extended a buffer zone all around the frontier hundreds of metres inland, including the Shejaia area just to the east of Gaza City in the north.
Israel says its forces have killed hundreds of Hamas fighters, including many senior commanders of the Palestinian militant group, since March 18 but the operation has alarmed the United Nations and European countries.
More than 400,000 Palestinians have been displaced since hostilities resumed on March 18 after two months of relative calm, according to United Nations humanitarian agency OCHA, and Israeli air strikes and bombardments have killed at least 1630 people.
Medical charity MSF said the Gaza Strip had become a "mass grave" with humanitarian groups struggling to provide aid.
"We are witnessing in real time the destruction and forced displacement of the entire population in Gaza," Amande Bazerolle, MSF's emergency co-ordinator in the area, said in a statement.
Katz said Israel, which has blocked the delivery of relief supplies into the territory since early March, was creating infrastructure to allow distribution through civilian companies at a later date but the blockade on aid would remain in place.
He said Israel would pursue a plan to allow Gazans who wished to leave the enclave to do so, although it remains unclear which countries would be willing to accept large numbers of Palestinians.
The comments from Katz, repeating Israel's demand on Hamas to disarm, underscore how far away the two sides remain from any ceasefire agreement despite efforts by Egyptian mediators to revive efforts to reach a deal.
Hamas has repeatedly described calls to disarm as a red line it will not cross, and has said Israeli troops must withdraw from the Gaza Strip under any permanent ceasefire.
"Any truce lacking real guarantees for halting the war, achieving full withdrawal, lifting the blockade and beginning reconstruction will be a political trap," Hamas said in a statement on Wednesday.
Two Israeli officials said this week there had been no progress in the talks despite media reports of a possible truce to allow the exchange of some of the 59 hostages still held in the Gaza Strip for Palestinian prisoners.
Israeli officials have said the increased military pressure will force Hamas to release the hostages but the government has faced large demonstrations by Israeli protesters demanding a deal to stop the fighting and get them back.
Israel launched its war in the Gaza Strip in response to the October 2023 attack by Hamas on southern Israel that killed 1200 people and took 251 people hostage, according to Israeli tallies.
The offensive has killed at least 51,000 Palestinians, according to local health authorities, and devastated the coastal enclave, forcing most of the population to move multiple times and reducing broad areas to rubble.
On Wednesday, Palestinian medical authorities said an air strike in Gaza City killed 10 people including Fatema Hassouna, a well-known writer and photographer who had documented the war.
A strike on another house further north killed three, they said.
Gaza's Hamas-run health ministry said Israel's suspension of the entry of fuel, medical and food supplies had begun to obstruct the work of the few remaining working hospitals, with medical supplies drying up.
"Hundreds of patients and wounded individuals are deprived of essential medications, and their suffering is worsening due to the closure of border crossings," the ministry said.
