Israel's assault on the border area with Lebanon and clashes with Hezbollah fighters has left large sections of the area north of the de facto border - known as the Blue Line - "uninhabitable", The Financial Times has reported.
Data collected by the British financial daily indicates that around five kilometres of Lebanese territory north of the border was becoming a "buffer" zone that Israel is looking to create with few civilians left and the majority of buildings in the area empty or ruined.
Israel has bombed Lebanon for almost nine months, ever since clashes with Hezbollah broke out shortly after the start of the Gaza war.
The Financial Times used commercial satellite data and research from two universities to reveal "clusters of destruction" in the Lebanese village of Aita Al-Shaab with local mayor Mohammad Srour saying that in Lebanon "it's systematic destruction".
The United Nations' International Organization for Migration (IOM) has put the number displaced in southern Lebanon at almost 97,000.
A high-level Lebanese official said the issue at hand was whether diplomatic efforts and the effective buffer area would be sufficient to prevent a broader escalation.
"Or will they want to expand the war and attempt their foolish plan of trying to eliminate Hezbollah entirely?" they asked.
But an Israeli official said the area was not a "buffer zone" and "we just want Hezbollah pushed back".
The official said there was no problem with UN peacekeepers or the Lebanese military or civilians remaining in the area.
Over 3,000 houses in southern Lebanon have been totally destroyed and 12,000 others have suffered moderate damage, said Hashem Haidar, chief of the country's Southern Council.
Israeli forces have reportedly employed at least one trebuchet, seemingly to fire burning projectiles at Lebanon, though the military wouldn't comment on the matter, The Financial Times reported.
Cross-border violence has killed 482 people in Lebanon, most of them fighters but also including 94 civilians, according to an AFP tally.
On the Israeli side, at least 15 soldiers and 11 civilians have been killed, according to authorities.
Agencies contributed to this report.