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Israeli Prime Minister Benjamin Netanyahu is deliberately using the issue of the Philadelphi Corridor to avoid a Gaza ceasefire deal and hold on to power, an Israeli coalition source has told Haaretz.

The unnamed source said the prime minister had decided several weeks ago to avoid a captive release deal and to insist on maintaining control of the Egypt-Gaza border areaÌý— a policy that is seen as convincing to Israeli moderates and right-wingers.

The source said that the policy has worked, signified by the media's focus on the issue.

"None of the ministers, even those who know that Netanyahu is scuttling a deal, will do anything. Their political survival depends on the life of the government, so this situation will continue. Netanyahu will lead to a never-ending war because that’s what’s best for him," the source said.

Discussions on Israel's military occupation of theÌýPhiladelphi Corridor are continuing, with Netanyahu's insistence on retaining control of the border area placing it as a key hurdle for Gaza ceasefireÌýnegotiations.

Since Netanyahu's speechÌýon Monday, reports have emerged that Israeli negotiators have informed Qatar that a withdrawal could be permitted during a second phase of a ceasefire.

µþ´Ç³Ù³óÌýHaaretz and The Times of Israel reported that prior to Netanyahu's speech, Mossad Chief David Barnea informed Qatari Prime Minister Mohammed bin Abdulrahman Al Thani of the proposal.

Additionally, Israeli negotiators have indicated an Israeli drawdown could also occur in the first phase which was outlined in a US framework from May.

On Tuesday, White House National Security Council spokesperson John Kirby said that a bridging proposal in the deal included a drawdown of Israeli troops from densely populated areas.

This includes those on the Philadelphi Corridor, although he did not elaborate on whether that included the whole of the corridor in the second phase.

Hamas has demanded a full withdrawal of Israeli forces from Gaza as part of a ceasefire deal, while Egypt is also adamant that Israeli withdraw from the Philadelphi Corridor, which was demilitarised as part of the 1979 Camp David Agreement that led to a peace treaty between the two.Ìý

On 3 September, Egypt "categorically rejected" remarks made by Netanyahu about the corridor, describing them as an "attempt to distract the Israeli public opinion", denouncing his "dragging of Egypt's name" in an attempt to "hinder reaching deals to implement a ceasefire and exchange prisoners/hostages and obstruct the mediation efforts undertaken by Egypt, Qatar and the US".

Regional states, including the Gulf Cooperation Council, Saudi Arabia, Qatar and Turkey also denounced Netanyahu's remarks.Ìý

A seniorÌýUSÌýofficialÌýwho spoke with the Washington Post said that a Palestinian force trained by the US is the most likely option for securing the border. The EU has offered its assistance to monitor the Rafah crossing alongside the Palestinian Authority.

Additionally, two senior US officials said that if a deal is not accepted, it could be the end of US mediation between Hamas and Israel.

On top of tension over the corridor, Netanyahu is reported to have tasked the military to prepare to take over aid distribution from international aid organisations, according to Israel's Channel 12.

Such a policy would necessitate a permanent presence in Gaza, which goes against Hamas' demand for a complete Israeli withdrawal from the enclave.

Netanyahu's Monday speech caused dismay among many Israelis seeking the return of Israeli captives held in Gaza; a desire exacerbated by the recovery of six captives found dead in the enclave.

However, although public pressure is being exacted on Netanyahu by strike action and protests, as well as by Defence Minister Yoav Gallant, far-right cabinet member Itamar Ben-Gvir is attempting to end negotiations altogether.

Israel's war on Gaza, which has been ongoing for 11 months, has killed 40,861 people and wounded a further 94,398 others.