Israel is studying a plan to be approved: an artificial island off the Gaza strip.

Hamas supporters ride on boats with Hamas flags off the coast of Gaza City, December 9, 2010

Israel is considering building an artificial island with sea and air ports off blockaded Gaza to be controlled by the Palestinian Authority, an Israeli television channel reported Tuesday.

The project, under development for three months by Transport Minister Yaakov Katz proposes building a man-made island four kilometers (2.5 miles) long and two kilometers (1.2 miles) wide, Israel's Channel 2 television reported.

Israeli Prime Minister Benjamin Netanyahu backs the plan for the island, which would also contain a tourist area, a marina, hotels and a desalination plant for sea water, the report said. It would be linked to Gaza by a four-kilometer bridge.

It is estimated the project will cost $5-$10 billion (3.5-7 billion Euros) and take six to 10 years to complete, the channel reported.

Yisrael Katz – Israeli Transport Minister - told Army Radio on Wednesday he had pitched the project to Prime Minister Benjamin Netanyahu, who told him to put together a plan, which "has been under examination for many months" by experts.

"The Israeli military would continue the naval blockade, but in a more localized way," he said.

A spokesman for the West Bank-based Palestinian Authority described the idea as "pure fantasy" and an attempt by Israel "to divert attention from the real problems of Gaza resulting from the Israeli siege."

A Hamas spokesman called it "a Zionist effort to ... internationalize" the blockade.

Yisrael Katz_Israeli Transportation Minister

"I am at the stage where the prime minister has to give the green light," Katz said. "This has not happened yet ... I am certain the Europeans and the Americans and many private elements will be willing to be part of this."

"We have built models and there are many entrepreneurs who are interested and prepared to invest billions and make money," Katz added in the interview, without giving further details.

Asked when the island proposal would be presented to Netanyahu's cabinet, Katz was non-committal, saying: "Soon, I hope."

The project's backers in the government would like to see the island managed by Palestinian Authority of Mahmud Abbas -- freezing out Islamist movement Hamas which controls the Gaza Strip since it won the legislative election of 2006.

Israel and neighboring Egypt tightened their blockade of Gaza after Hamas Islamists opposed to peace with the Israeli state seized control of the territory in 2007 from forces loyal to Western-backed Palestinian President Mahmoud Abbas.

Claiming security concerns, Israel does not allow a sea or air port to operate in the enclave.