Israel estimates that its imminent offensive on Gaza City would displace one million Palestinians, a senior Israeli military official said.
The senior official from the Israeli defence ministry said "approximately 70,000" Palestinians had already left Gaza's north in recent days, fleeing the Israeli advance.
As Israel prepares for Gaza City's evacuation, the military official said a planned "humanitarian area" would be set up, extending from a cluster of refugee camps in central Gaza to the southern area of Al-Mawasi and eastwards.
The Red Cross has warned that any Israeli attempt to do so would be impossible in a safe and dignified manner.
Israel's military has been building up its forces for the planned operation to seize Gaza City.