US envoy Steve Witkoff has announced the start of phase two of President Donald Trump's plan to end the war in Gaza, with a technocratic Palestinian government established in the territory.

Under phase one, Hamas and Israel agreed to a ceasefire in October, as well as a hostage-prisoner exchange, a partial Israeli withdrawal, and an aid surge.

Witkoff said phase two would also see the reconstruction and full demilitarization of Gaza, including the disarmament of Hamas and other Palestinian groups.

The US expects Hamas to comply fully with its obligations, he warned, noting these include the return of the body of the last dead Israeli hostage. Failure to do so will bring serious consequences.

However, two key points of phase two could be problematic.

Hamas has previously refused to give up its weapons without the creation of an independent Palestinian state, and Israel has not committed to fully withdrawing from Gaza.

The ceasefire is also fragile at best, with both sides accusing each other of repeated violations. Almost 450 Palestinians have been killed in Israeli strikes since it came into force, according to Gaza's Hamas-run health ministry.

And humanitarian conditions in the territory remain dire, according to the UN, which has stressed the need for the unrestricted flow of critical supplies.

In his statement, Witkoff declared that with the launch of phase two of Trump's 20-point peace plan on Wednesday, Gaza was moving from ceasefire to demilitarisation, technocratic governance, and reconstruction.

Phase Two establishes a transitional technocratic Palestinian administration in Gaza, the National Committee for the Administration of Gaza (NCAG), and begins the full demilitarization and reconstruction of Gaza, primarily the disarmament of all unauthorized personnel.

Following the announcement, regional mediators Egypt, Qatar, and Turkey welcomed the formation of what they called the Palestinian Technocratic Committee to Administer the Gaza Strip, saying it would contribute to efforts aimed at consolidating stability and improving the humanitarian situation.

They also revealed that the 15-member committee would be headed by Ali Shaath, a former deputy planning minister in the Palestinian Authority (PA), which governs parts of the occupied West Bank.

Gaza's transitional administration will operate under the supervision of a Board of Peace, chaired by Trump according to the 20-point plan unveiled three months ago.

Nickolay Mladenov, a Bulgarian politician and former UN Middle East envoy, is set to be the board's representative on the ground in Gaza.

Trump's plan involves an International Stabilisation Force (ISF) also being deployed to train and support vetted Palestinian police forces.

Earlier on Wednesday, Hamas and its ally Palestinian Islamic Jihad (PIJ) said in a joint statement that they had agreed to support the efforts to form the technocratic Palestinian government while providing the appropriate environment for it to begin work.

The PA, dominated by Fatah, also expressed support. Vice-President Hussein al-Sheikh stressed the importance of linking institutions in the West Bank and Gaza to uphold the principle of one system, one law, and one legitimate weapon.

According to Trump's plan, the PA will take over governing Gaza once it has completed reforms and can do so securely and effectively.

Israeli Prime Minister Benjamin Netanyahu's office said he had spoken with the parents of Ran Gvili, the last dead hostage in Gaza, emphasizing that Ran's return is a top priority and that the establishment of a technocratic committee would not affect efforts to recover him.

The Israeli government has accused Hamas of delaying the recovery of Gvili's remains and has indicated that the Rafah border crossing will not reopen until they are handed over.

This latest phase of the peace initiative reflects ongoing challenges, including the need for immediate humanitarian aid and a sustainable ceasefire to support long-term peace efforts in the region.