Palestinians mourn their relatives who were killed in an Israeli airstrike in Nuseirat, at the Al Aqsa hospital in Deir al Balah, Gaza Strip, on Sunday. AP

An Israeli airstrike killed 27 people in central Gaza, mostly women and children, and fighting with Hamas raged across the north on Sunday as Israel's leaders aired divisions over who should govern Gaza after the war, now in its eighth month.

Prime Minister Benjamin Netanyahu faces criticism from the other members of his War Cabinet, with main political rival Benny Gantz threatening to leave the government if a plan is not created by June 8 that includes an international administration for postwar Gaza. His departure would leave Netanyahu more reliant on far-right allies who support full military occupation of Gaza and rebuilding of Jewish settlements there.

US National Security Adviser Jake Sullivan met with Netanyahu to discuss an ambitious US plan and help the Palestinian Authority govern Gaza in exchange for a path to eventual statehood. Netanyahu's office in a statement said they focused on Israel's military operation in the southern Gaza city of Rafah, humanitarian aid and hostages held in Gaza.

Netanyahu opposes Palestinian statehood, saying Israel will maintain open-ended security control over Gaza and partner with local Palestinians unaffiliated with Hamas or the Western-backed Palestinian Authority.

Palestinians search for survivors after an Israeli airstrike on a residential building in Gaza Strip, on Sunday. AP

The US said Sullivan said Israel should "connect its military operations to a political strategy” and proposed measures to ensure more aid "surges” into Gaza.

The war has killed at least 35,000 Palestinians, according to Gaza's Health Ministry, which doesn't distinguish between combatants and civilians. Around 80% of the population of 2.3 million Palestinians have been displaced within the territory, often multiple times.

Associated Press