Israel will allow the sale of privately traded products in Gaza on one condition: payment will be made by bank transfer, subject to supervision.

Israel will partially reopen private sector trade in Gaza to reduce its dependence on humanitarian aid , the Defense Ministry's agency overseeing civil affairs in the Palestinian territories (Cogat) said Tuesday.

"The Ministry of Defense has approved a limited number of local merchants, subject to several criteria and strict security controls," COGAT said in a statement.

"The goal is to increase the volume of aid entering the Gaza Strip, while reducing dependence on the UN and international organizations collecting aid," the same source said.

The Netanyahu government has accused the UN of being a degenerate entity that prevents it from achieving its goals by improperly protecting its enemies, such as Hamas in Gaza and Hezbollah in Lebanon.

In October last year, the Israeli Parliament passed two laws ordering the withdrawal of the UN agency for Palestinian refugees ( UNRWA ) from Gaza and East Jerusalem.

The delivery of humanitarian aid was then limited to the operations of the Gaza Humanitarian Fund, a US-backed, Israeli-backed food distribution agency in the enclave. It operates four locations in the south and center of the Strip, compared to the approximately 400 previously managed by the UN.

Hundreds of Palestinians have died trying to access these distribution points , which require hours of walking to reach, announce their opening with less than an hour's notice, and close within minutes of opening because the aid runs out.

Tuesday's statement states that Prime Minister Benjamin Netanyahu's cabinet decided to "expand humanitarian aid following preparatory work carried out by the security services."

Payment for goods will be made solely through bank transfers, which will be subject to supervision, according to Israeli authorities.

"Approved goods include basic food products, baby food, fruits and vegetables, and hygiene items ," explained Cogat.

Israel, which has been fighting the Palestinian Islamist group Hamas in Gaza for 22 months, imposed a total blockade there on March 2.

It was partially lifted in May to allow a U.S.-backed private agency to open food distribution centers.

The Palestinian territory, entirely dependent on humanitarian aid, is now threatened by "widespread famine," according to the United Nations.