The US and Israel have rejected an Arab plan for the post-war reconstruction of the Gaza Strip that would allow the 2.1 million Palestinians living there to stay in place.

The proposal, endorsed by Arab leaders at a summit in Cairo, is their alternative to President Donald Trump’s idea for the US to take over Gaza and permanently resettle its population.

The Palestinian Authority and Hamas welcomed the Arab plan, which calls for Gaza to be governed temporarily by a committee of independent experts and for international peacekeepers to be deployed there.

But both the White House and Israeli foreign ministry said it failed to address realities in Gaza and stood by Trump’s vision.

The summit took place amid growing concern that Gaza’s fragile ceasefire deal could collapse after the six-week first phase expired last Saturday.

Israel has blocked aid from entering the territory to pressure Hamas to accept a new US proposal for a temporary extension of the truce, during which more hostages held in Gaza would be released in exchange for Palestinian prisoners.

Hamas has insisted the second phase should begin as agreed, leading to an end of the war and a full Israeli troop withdrawal.

The $53bn (£41bn) Arab plan for rebuilding Gaza once the war ends was presented by Egypt at an emergency Arab League summit on Tuesday.

A statement endorsing the plan stressed “the categorical rejection of any form of displacement of the Palestinian people”, describing such an idea as “a gross violation of international law, a crime against humanity and ethnic cleansing”.

The plan envisages reconstruction taking place over three phases and taking five years, during which some 1.5 million displaced Gazans would be moved into 200,000 prefabricated housing units and 60,000 repaired homes.

In the first phase, which would last six months and cost $3bn, millions of tonnes of rubble and any unexploded ordnance would be cleared.

The second phase, lasting two years and costing $20bn, would see housing and utilities rebuilt. An airport, two seaports and an industrial zone would be built during the third phase, which would take another two years and cost $30bn.

The Arab plan also proposes that an “administrative committee” made up of independent Palestinian technocrats run post-war Gaza for a transitional period while “working towards empowering the Palestinian Authority to return”.

Hamas – which is proscribed as a terrorist organisation by Israel, the US, UK and others – took full control of Gaza in 2007, ousting forces from the Fatah-dominated PA in violent clashes a year after winning parliamentary elections. The PA was left governing parts of the occupied West Bank.

Palestinian President Mahmoud Abbas, who heads the PA, told the summit that he welcomed the Arab plan and urged Donald Trump to support it.

Hamas said it appreciated “the Arab position rejecting attempts to displace our people”.