The Prime Minister's Office on Sunday denied reports PM Naftali Bennett was considering reverting to the cash deliveries of Qatari funds into the Gaza Strip.
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Hamas demands millions of dollars a month, provided by Qatar, as payment for civil servants in Gaza.
Qatar, Israel and the United Nations have agreed to transfer grants provided by Doha, including cash payments of $100 to $100,000 impoverished families in Gaza.
The cash deliveries – which literally arrive in the coastal enclave via suitcases carried by Qatari envoys – were suspended in May when Israel and Hamas engaged in an 11-day conflict.
Hamas has threatened renewed violence against Israel unless the payments are resumed but Israel had demanded that the cash payments be replaced with regulated wire transfers to better ensure that the funds are used to pay functionaries and the needy in Gaza, rather than funneled to terrorist activity.
The parties have yet to agree on a new mechanism for transferring funds to the Hamas employees.
The Prime Minister's Office stated that contrary to reports this Sunday, "there will be no return to the previous system."
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It added that Bennett and Defense Minister Benny Gantz are currently considering new options, following the withdrawal of the Palestinian Authority from a tentative agreement on Friday.
"When a proper outline is found that ensures that the money does not go to terrorist activities, it will be presented by the defense minister to the prime minister," the PM's office explained.
i24NEWS contributed to this report.
