The US Embassy in Libya on Saturday denied reports that the Trump administration is mulling a plan to relocate up to one million Gazans from the Gaza Strip to Libya.

“The report of alleged plans to relocate Gazans to Libya is untrue,” the Embassy in Libya wrote in a post on social media site X.

The denial follows an NBC News report on Friday about the plan. Sources quoted in the report said that the plan, if enacted, could involve the release of billions of dollars in US funds frozen for over a decade to Libya.

Sources indicate that the administration has engaged in discussions with Libya's leadership regarding the resettlement plan. While no final agreement has been reached, Israel has reportedly been kept informed of these ongoing discussions.

Arab nations, previously expected by the Trump administration to assist with Gaza's rebuilding, have expressed criticism of permanent relocation ideas.

The plan aligns with Trump’s broader vision for a post-war Gaza, which he described as becoming "the Riviera of the Middle East." He initially introduced this plan during a meeting with Prime Minister Benjamin Netanyahu in February.

To achieve this goal, Trump has emphasized that Gazans would need to be permanently resettled elsewhere. The plan was swiftly rejected by Egypt and Jordan, two countries that Trump suggested should take in Gazans as part of his plan.

Beyond Libya, the Trump administration has reportedly considered other locations for resettlement of Gazans, including Syria, following the recent change in its leadership. Other locations reportedly considered were Sudan, Somalia, and Somaliland, a breakaway region of Somalia.