The trilateral meeting between Egypt, the United States, and Israel, expected to take place at the end of the month, is now contingent on Prime Minister Benjamin Netanyahu agreeing to the proposed gas agreement with Egypt, Ynet reported on Tuesday evening.
Egyptian President Abdel Fattah al-Sisi is also reportedly demanding that Israel withdraw from the Philadelphi and Netzarim corridors, Ynet reported, citing sources familiar with the matter.
"This is a huge opportunity for Israel," a US official told Axios on Sunday.
"Selling gas to Egypt will create interdependence, get the countries closer together, create a warmer peace, and prevent war."
Marco Rubio speaks with Egyptian FM
US Secretary of State Marco Rubio and Egyptian Foreign Minister Badr Abdelatty also spoke on Tuesday regarding implementing the second phase of the U.S.-backed Gaza peace deal, the US State Department said in an afternoon statement.
The two also discussed bilateral cooperation between their countries and the ongoing attempts to achieve a ceasefire in Sudan.
James Genn contributed to this report.