A senior Israeli military commander said on Friday that Israel is preparing to reoccupy the Gaza Strip if rocket fire from the area does not halt.

"We're talking about more aggressive military activity," Galant told daily Israeli newspaper the Maariv. "If the price we have to pay becomes unreasonable as a result of increased (Palestinian) attacks, then we shall have to take all steps, including occupying the Gaza Strip," Galant said.

"It could be anything from a partial occupation of the Gaza Strip to a full occupation," he said, adding that his plans have been approved by senior officials, including Defense Minister Shaul Mofaz said Major General Yoav Galant.

Since Israel withdrew from the Gaza Strip last August, Palestinian militants have continued to fire homemade rockets into Israel on a daily basis.

Galant said the "intolerable" unrelentless attacks could spark large-scale military ground operations should the Hamas-led Palestinian government fail to stop the attacks.

"In the new reality the military acts (are possible) against all the terrorist organizations, except Hamas, which is restraining itself," Galant said.