The US is weighing the possibility of asking Israel to transfer part of the tax revenues it is withholding from the Palestinian Authority (PA) to US President Donald Trump’s 'Board of Peace' to support his plan for Gaza, according to five sources to Reuters familiar with the discussions.

Three of the sources, officials aware of US-Israeli talks, said the Trump administration has not yet decided whether to formally present the request to Israel.

The two other sources said the proposal would allocate some of the withheld funds to a US-supported transitional administration in Gaza, while the remaining money would go to the PA if it implements reforms.

The PA estimates the withheld tax revenues total around $5 billion.

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White House weighs diverting frozen Palestinian funds to bankroll floundering 'Board of Peace': Report