Official: U.S. to Provide Substantial Aid for Gaza Reconstruction

FOX News' Nina Donaghy and The Associated Press contributed to this report.

U.S. aid for Gaza reconstruction will be "substantial," a State Department official told FOX News Tuesday after reports that the Obama administration plans to designate at least $900 million to rebuild the war-ravaged strip controlled by the U.S.-designated terror group Hamas

The official could not confirm reports about the size of the package intended to be administered through the Palestinian Authority led by Mahmoud Abbas. The PA, which is headquartered in the West Bank, does not have control on the ground in Gaza, and the U.S. has no formal contacts with Hamas.

"Our pledge will be substantial, that it will contain new funding and funding we had planned for 2009," the official said. "As the secretary said, it is not all finished yet, so can't confirm a $900 million package."

Secretary of State Hillary Clinton said Tuesday -- as she prepared to make her first Mideast trip as America's top diplomat.-- that details on the package are still being worked out.

"We have made no decisions, and we are working across the government to determine what our approach will be," she said, adding that she's looking forward to attending the international donors conference for Gaza on March 2 in Egypt.

"But you know, there's still a lot of work to do," she said.

Israeli and Palestinian officials said Monday that Clinton will visit Israel and the West Bank during the first week of March. Clinton said during her Asia trip last week that she would attend an international donors conference in Egypt on March 2 to discuss reconstruction in Gaza, which last month was battered in fighting with Israeli Defense Forces responding to rockets fired from the strip

The Israeli officials, meanwhile, said Clinton will arrive in Israel on March 2 for meetings with the country's top leaders. Israel is currently ruled by a caretaker government as Likud Party leader Benjamin Netanyahu cobbles together a new coalition.

The Israeli officials spoke on condition of anonymity because the visit had not been announced by the State Department, which has not released Clinton's schedule for next week.

Yasser Abed Rabbo, a senior aide to Palestinian President Mahmoud Abbas, said Clinton also would visit the West Bank during her stay.