Egypt will not participate in the displacement of Palestinians, an "act of injustice" that would threaten Egyptian security, President Abdel Fattah Al-Sisi said on Wednesday in his first public response to U.

An Israeli airstrike on Wednesday killed at least three Palestinians in Tubas in the occupied West Bank, Palestinian Red Crescent said, adding there were also a number of injuries reported.

After a ceasefire deal paused 15 months of war in Gaza, hundreds of thousands of Palestinians returned to the rubble of their homes.

The Palestinian Health Ministry says two Palestinians were killed by Israeli fire in the occupied West Bank overnight and into Wednesday.

The president expanded on a controversial idea that was rejected by the Arab states and would represent a significant shift in U.S. policy.

Israel on Monday began permitting thousands of Palestinians to return to the devastated northern Gaza Strip for the first time since the early weeks of the 15-month conflict between Israel and the militant group Hamas. The move comes as part of a fragile ceasefire agreement currently in place.

Asked for a reaction to Trump's comments, a foreign ministry spokesperson said Berlin shared the view of "the European Union, our Arab partners, the United Nations ... that the Palestinian population must not be expelled from Gaza and Gaza must not be permanently occupied or recolonised by Israel."

Militant group Hamas has hailed the return of thousands of displaced people to northern Gaza a "victory", as Palestinians gathered with their belongings to return to the strip for the first time since the war began.

Hamas is set to free three more Israeli hostages as well as five Thai captives, and Israel is to release another 110 Palestinian prisoners.

The Palestinian Prisoner’s Society says that 110 Palestinians will be released from Israeli prisons today in the third phase of a ceasefire and captive exchange deal between Israel and Hamas. Eight captives will also be released by Hamas and other Palestinian groups, including five Thai nationals and three Israelis.

Israel is set to release 110 Palestinian prisoners as part of the ongoing ceasefire agreement with Hamas, including 30 children and renowned resistance leader Zakaria Zubeidi. This release is part of a larger prisoner exchange initiative aimed at easing tensions between Israel and Palestinian factions.