Netanyahu's comments come as Gaza remains gripped by daily violence. (File)

Prime Minister Benjamin Netanyahu said Israeli forces now control 60 per cent of the Gaza Strip, suggesting troops have expanded into more of the Palestinian territory than set out in an October ceasefire plan.

His comments come as Gaza remains gripped by daily violence, and as efforts to advance the fragile truce and put a permanent end to the war appear to have stalled.

"In the past two years we have shown the entire world what mighty forces are embedded in our people, in our state, in our army, in our heritage," Netanyahu said on Thursday at an event marking Jerusalem Day.

"We brought back home all our hostages, up to the last one," he added, referring to one of the main stated aims of the war in Gaza. "There were those who said: get out, get out! We did not get out. Today we control 60 per cent; tomorrow we shall see."