The U.S. administration of President Donald Trump is working on a plan to permanently relocate as much as one million Gazans to Libya, according to reports in U.S. media. 

NBC News cited "five people with knowledge of the matter" as saying the plan was in advanced enough stages to be discussed with Libyan leadership. 

In exchange for resettling Gazans, the administration would release to Libya billions of dollars of funds the U.S. froze more than a decade ago, the report added. 

For the Palestinians, the financial incentives would include housing and academic scholarships, it is understood. 

The vast North African country has faced devastating instability for the past 14 years, following the outbreak of civil war and the toppling of dictator Muammar Gaddafi. Two rival governments—one in the west, led by Abdul Hamid Dbeibeh, and another in the east under Khalifa Haftar—are vying for power. 

Since the report came out, unnamed State Department sources have cast doubt on its accuracy.