Netanyahu has ruled out any role for the Palestinian Authority in Gaza, saying he plans to hand civil responsibilities over to local Palestinians unaffiliated with it or Hamas. But he has also said that it's impossible to make any such plans until Hamas is defeated because it has threatened anyone who cooperates with Israel.
Netanyahu's government is also deeply opposed to Palestinian statehood.
In a statement issued after the ultimatum, Netanyahu said Gantz' conditions would amount to "defeat for Israel, abandoning most of the hostages, leaving Hamas intact and establishing a Palestinian state.”
