Israel Defence Forces told local media it's shifted its focus from fighting Hamas to capturing territory and controlling food distribution.
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Israel's military have revealed that they plan to control 75% of Gaza within two months, local media reported.
It comes as Israel continues to ramp up its offensive in Gaza, in what it says is a bid to pressure Hamas to release the remaining Israeli hostages.
As part of its expanding military operation, Israel said it will launch a new aid delivery mechanism on Monday, would push the Palestinian population into three small zones in Gaza, and would then occupy the remaining three quarters of Gaza.
The Israel Defence Forces revealed its renewed offensive in the Strip is no longer about fighting Hamas', but instead about capturing territory, controlling food distribution and destroying Hamas infrastructure, local media reported on Sunday.
Hamas previously said it would release the hostages in exchange for a lasting ceasefire and an Israeli military withdrawal from the territory.
Prime Minister Benjamin Netanyahu, however, rejected the terms and said that Israel plans on "taking control of all of Gaza," and wants to establish a new system to distribute aid that circumvents the militant group.
Israel blocked all food, medicine and fuel from entering Gaza for almost three months, which prompted global criticism and widespread concerns about the critical risk of famine.
Last week, Israel finally let a trickle of aid enter into the Strip, although aid organisations and the United Nations (UN) warned that the amount of aid distributed is not enough.
Israel is also pursuing a new US-backed plan to control aid to Gaza, but the American leading the effort unexpectedly resigned on Sunday, citing it had become clear that his organisation would not be allowed to operate independently.
The UN previously said it would not be involved in the US-backed plan because it is not impartial, neutral or independent.
Over the past 24 hours, Israeli strikes killed at least 38 people, including children, health officials said. This toll does not include hospitals in the battered north, which remain inaccessible as they are encircled by Israeli troops.