The US is reportedly considering relocating up to one million Palestinians from Gaza to Libya, NBC reported, citing sources.
In return, Washington may unfreeze $30 billion in Libyan funds.
The plan has sparked outrage, with critics calling it a violation of international law and Palestinian rights.
Libya remains unstable with rival governments vying for power.
The Trump administration has denied the claim, calling it “untrue.” Discussions allegedly included Israeli and Libyan leadership, but no final deal has been reached.
Human rights groups have condemned the potential displacement.
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