Israeli Defense Minister Ehud Barak on Monday proposed the construction of a tunnel that would connect the northern Gaza Strip with the southern West Bank, local daily Ha'aretz reported on its website.

Barak, also head of the Labor Party, made the remarks at an election rally at Ben-Gurion University, explaining that the tunnel would be 48 kilometers long and may be dug between Beit Hanoun in northern Gaza and a village near the West Bank city of Hebron.

The tunnel would cost US$2-3 billion, said the defense minister, adding that it was "a reasonable sum."

According to Barak, it was possible to dig the tunnel, which would remain under Israeli sovereignty, while the Palestinians would maintain authority over the corridor's traffic.

If built, the tunnel would enable freedom of movement between Gaza and the West Bank, the two disjointed Palestinian territories.

"A political solution of two states for two nations is the only solution that can bring a long-term agreement between the Israelis and Palestinians," Barak added.

After Hamas, which Israel blacklists as a terror organization, took control of the Gaza Strip in 2007, the Jewish state has further tightened its siege on the coastal enclave.