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The threat came after Israel on Monday imposed a total siege on the Gaza Strip, cutting off food, water and electricity supplies, and sparking fears of an increasingly dire humanitarian situation.
The military did not say where the bodies were found in Gaza. Israeli forces are currently invading the southern Gaza city of Rafah, saying it's the last stronghold of Hamas and hostages are being held there.
In the besieged Palestinian territory, Israeli strikes continued early on Tuesday, particularly in Bureij in central Gaza where local hospital sources reported several deaths.
Protesters observed a minute's silence in Tel Aviv's Hostages Square in honour of the captives whose bodies were recovered by Israeli troops this month, an AFP correspondent reported.
Protests against Netanyahu's handling of the war against the Palestinian group Hamas fighters have gathered pace, with tens of thousands taking to the streets of Israel's biggest city Tel Aviv every weekend.
The group has dropped a demand that Israel first commit to a permanent ceasefire before signing the agreement, and would allow negotiations to achieve that throughout a first six-week phase.
Netanyahu called a permanent cease-fire in Gaza a "nonstarter” until long-standing conditions for ending the war are met, appearing to undermine the proposal that Biden described as an Israeli one.
The army said the bodies of hostage Maya Goren as well as soldiers Ravid Aryeh Katz, Oren Goldin, Tomer Ahimas and Kiril Brodski had been returned to Israel.
The Israeli military said the bodies of Carmel Gat, Hersh Goldberg-Polin, Eden Yerushalmi, Alexander Lobanov, Almog Sarusi and Ori Danino had been brought to Israel.
The Israeli military said it struck a Hamas base embedded inside the school. Hamas denies Israeli allegations that it uses schools and hospitals for military purposes.
