The draft resolution would follow up on the ceasefire deal between Israel and Hamas brokered by US President Donald Trump, giving the council's blessing for a transitional administration and a temporary international security force in the devastated territory.
Unlike previous drafts, the latest version of the resolution mentions a possible future Palestinian state, which the Israeli government is vehemently against.
"Our opposition to a Palestinian state on any territory has not changed," Netanyahu said at a cabinet meeting on Sunday.
Netanyahu had come in for criticism from coalition members, including far-right finance minister Bezalel Smotrich, who had accused him of failing to respond to a recent wave of recognition of Palestinian statehood by Western countries.
"Formulate immediately an appropriate and decisive response that will make it clear to the entire world -- no Palestinian state will ever arise on the lands of our homeland," Smotrich urged Netanyahu on X.
The premier replied Sunday that he did "not need affirmations, tweets or lectures from anyone".
Other ministers likewise expressed their opposition to Palestinian statehood, though none explicitly referred to the resolution.
"Israel's policy is clear: no Palestinian state will be established," Defence Minister Israel Katz wrote on X Sunday.
Foreign Minister Gideon Saar also said on X that the country would "not agree to the establishment of a Palestinian terror state in the heart of the Land of Israel".
Far-right firebrand and National Security Minister Itamar Ben Gvir called the Palestinian identity an "invention".
The Security Council resolution would effectively usher in the second phase of the US-backed deal reached last month, which brought about a ceasefire after two years of war sparked by Hamas's October 7, 2023 attack on Israel.
The first phase has seen the release of the last 20 living Israeli hostages and nearly all of the 28 dead captives held by Palestinian militants.
In exchange, Israel has freed nearly 2,000 Palestinian prisoners and returned 330 bodies.
Late on Sunday, the Israeli military said in a statement that it had killed a "terrorist" in northern Gaza after the individual was "identified crossing the yellow line and approaching IDF (Israeli) troops".
The so-called yellow line demarcates where Israeli troops have withdrawn to inside the Gaza Strip as part of the ceasefire.
The military said it "struck and eliminated the terrorist".
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