According to US Secretary of State Antony Blinken, Palestinians should not be forced to leave Gaza and should be allowed to return when conditions allow.
Mr. Blinken criticized statements made by some Israeli ministers calling for the relocation of Palestinians elsewhere.
On his most recent Middle East tour, the US official was in Qatar.
His remarks come in the aftermath of reports that dozens of people were killed at a refugee camp in northern Gaza.
Footage from Jabalia shows bodies, many of them women and children, lying in the rubble of a destroyed building.
More than 60 Palestinians have reportedly been killed in the southern city of Khan Younis in the last day.
The Jabalia camp has been hit several times since Israel launched its war against Hamas on 7 October, following an unprecedented attack by Hamas gunmen on southern Israel.
In the Hamas raids, approximately 1,200 people were killed, the majority of whom were civilians, and approximately 240 others were taken hostage.
According to the Hamas-run health ministry, more than 22,000 people, mostly women and children, have died in Gaza. It has reported at least 113 deaths as a result of Israeli bombardment over 24 hours.
“Palestinian civilians must be able to return home as soon as conditions allow,” said Mr Blinken on Sunday. “They cannot, they must not be pressed to leave Gaza.”
Bezalel Smotrich, Israel’s far-right Finance Minister, has called on Palestinians to leave Gaza to make way for Israelis who can “bloom the desert.”
And, as a “solution” to the crisis, National Security Minister Itamar Ben-Gvir issued a call this week to “encourage the migration of Gaza residents.”
The Israeli government’s official line is that Gazans will be able to return home eventually, though it has yet to specify how or when this will be possible.
Meanwhile, the situation in Gaza is deteriorating. Health officials say even medical facilities such as hospitals are now unsafe.
After Israel issued evacuation orders, three international medical aid organizations announced their withdrawal from the al-Aqsa hospital in central Gaza.
A United Nations Office for the Coordination of Humanitarian Affairs (OCHA) representative told the BBC World Service’s Newshour program that the organization was “extremely concerned” by the development.
“What it means is that a hospital that was already over-crowded and overloaded and well beyond its capacity is now without absolutely critical reinforcement to support it as it deals with an ever-increasing number of casualties,” Gemma Connell, the hospital’s director, said.
Mr. Blinken’s latest trip to the Middle East comes amid rising regional tensions and fears that the Gaza war will spread.
Saleh al-Arouri, a top Hamas official, was assassinated along with six others – two Hamas military commanders and four other members – in a suspected Israeli attack in southern Beirut on Tuesday.
Hassan Nasrallah, the leader of Hezbollah, the powerful Iranian-backed movement in Lebanon, called Arouri’s assassination a “flagrant Israeli aggression” that would not go unpunished.
Hezbollah then launched rockets into Israel on Saturday as a “preliminary response” to Arouri’s death.
“This is a time of great tension in the region.” “This is a conflict that has the potential to spread and cause even more insecurity and suffering,” Mr Blinken said.
Qatar’s Prime Minister, Sheikh Mohammed bin Abdulrahman al-Thani, stated that Arouri’s death impacted “the complicated process.”
Mr Blinken also described the death of journalist Hamza al-Dahdouh, the eldest son of Al Jazeera’s Gaza bureau chief, in an Israeli strike in southern Gaza as an “unimaginable tragedy.”
He went on to say that “far too many innocent Palestinian men, women, and children” have died as a result of the conflict.
Mr. Blinken arrived in Qatar after visiting Jordan, Turkey, and Greece. He arrived in Abu Dhabi late Sunday and will travel to Saudi Arabia on Monday.