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Appearing to contradict earlier comments, Netanyahu said that Israel does not seek to occupy or govern Gaza and that he still hoped for a normalisation deal with Saudi Arabia.
A month into the war on Gaza, more than 10,000 people have been killed in indiscriminate bombardment, with Israel saying it will impose security control indefinitely after its war with Hamas.
Ankara announced its decision to recall its ambassador to Israel on the eve of what promises to be a difficult visit to Turkey by US Secretary of State Antony Blinken.
Hamas is ready to free dozens of captives in the first phase of a possible deal with Israel but needs time to determine their condition, an official has said.
Protests against Netanyahu and his government have taken place in Israel for months, calling for a deal to release hostages held in Gaza.
On July 1, Israeli Prime Minister Benjamin Netanyahu said that the Israeli army is advancing to the "end of the phase of eliminating" the "army" of Hamas.
Israel's military spokesperson, asked about Netanyahu's comments during a daily briefing with reporters, declined to respond, saying: "We are now at war, focused on the war."
As Israel extends its concentrated assault on North Gaza to neighbouring southern areas, over 200 Palestinians have been killed in three days.
Germany and the United States have reaffirmed support for a two-state solution to the Palestinian-Israeli conflict after Netanyahu exhibited a map which omitted the Palestinian territories.
A major railway and ports initiative announced on the sidelines of the G20 summit will connect East Asia, the Gulf, and Europe, with Israel to be a main connecting hub.