Netanyahu, speaking to reporters alongside German Chancellor Friedrich Merz in Jerusalem, said that he would hold important discussions with US President Donald Trump at the end of the month on how to ensure the plan's second phase was achieved.
The prime minister's office in November said that Trump had invited Netanyahu to the White House "in the near future" although a date for the visit has not yet been made public.
Netanyahu said that he would discuss with Trump how to bring an end to Hamas rule in the Gaza Strip.
A ceasefire between Israel and Hamas is entering its second month, although both sides have repeatedly accused each other of violating the truce agreement.
Netanyahu said that it was important to ensure Hamas not only upholds the ceasefire but also follows through on "their commitment" to the plan to disarm and for the Gaza Strip to be demilitarised.
Israel retained control of 53 per cent of the enclave under the first phase of Trump's plan, which involved the release of hostages held by militants in the Gaza Strip and of Palestinians detained by Israel.
The final hostage remains to be handed over are those of an Israeli police officer killed on October 7, 2023 fighting Gazan militants who had invaded Israel.
"We'll get him out," Netanyahu said
Hamas is ready to discuss "freezing or storing" its arsenal of weapons as part of the ceasefire, a member of Hamas' decision-making political bureau said on Sunday.
"We are open to have a comprehensive approach in order to avoid further escalations or in order to avoid any further clashes or explosions," Bassem Naim told the Associated Press in Qatar.
Naim said Hamas retains its "right to resist" but said the group is ready to lay down its arms as part of a process aimed at leading to the establishment of a Palestinian state.
He gave few details on how this might work but suggested a long-term truce of five or 10 years for discussions to take place.
"This time has to be used seriously and in a comprehensive way," he said, adding that Hamas is "very open minded" about what to do with its weapons.
"We can talk about freezing or storing or laying down, with the Palestinian guarantees, not to use it at all during this ceasefire time or truce," he said.
According to the US plan, Israel is to pull back further in the second phase as a transitional authority is established in the strip and a multinational security force is deployed, Hamas is disarmed and reconstruction begins.
An international co-ordination centre has been established in Israel but there are no deadlines in the plan and officials involved say that efforts to advance it have stalled.
"What will be the timeline? What are the forces that are coming in? Will we have international forces? If not, what are the alternatives? These are all topics that are being discussed," Netanyahu said, describing them as central issues.
Israel has repeatedly carried out air strikes since the ceasefire came into effect that it says are fending off attacks or destroying militant infrastructure.
Gaza's health ministry says 373 Palestinians have been killed since the ceasefire started.
Three Israeli soldiers have been killed by militants.
Netanyahu said that he would also discuss with Trump "opportunities for peace," an apparent reference to US efforts for Israel to establish formal ties with Arab and Muslim countries.
"We believe there's a path to advance a broader peace with the Arab states, and a path also to establish a workable peace with our Palestinian neighbours," Netanyahu said, asserting Israel would always insist on security control of the West Bank.
Trump has said he promised Muslim leaders that Israel would not annex the occupied West Bank, where Netanyahu's government is backing the development of Jewish settlements.
with AP
