Sharon plans 'Jewish-free zone' in Gaza
Mr Sharon spoke to Likud MPs hours after telling the Haaretz newspaper he has "given an order to plan for the evacuation" of the 17 Gaza settlements, which are home to about 7,500 Israelis.
"I am working on the assumption that in the future there will be no Jews in Gaza," Mr Sharon said.
He told MPs: "I don't know if it will be done in one go, or gradually, but over the course of time, it will not be right to continue Jewish settlement in Gaza," a Likud official said.
Mr Sharon referred to Jewish settlement in Gaza as "a security burden and a source of continuous friction," said the official.
The prime minister has said in recent weeks he would take unilateral steps, including removing some settlements and imposing a boundary on the Palestinians, if there is no progress in stalled peace efforts by this summer.
Mr Sharon's plan was met by widespread scepticism in Israel and the Palestinian areas.
Moderate and ultra-nationalist Israeli MPs alike said they found it difficult to believe Mr Sharon, a patron of the Jewish settlement movement for many years, would take action against a core constituency and risk the fall of his centre-right coalition.
Some suggested Mr Sharon was trying to deflect attention from corruption probes against him. Palestinian leader Yasser Arafat also expressed disbelief. "Seventeen? What, so they can replace them with another 170?" he said.
Mr Sharon told MPs his "disengagement programme" from the Palestinians is not yet complete.
He said he has asked Israel's National Security Council to "examine options and to begin with the Gaza Strip," according to the Likud official.
The prime minister said he would seek the approval of parliament and would also consult with US President George W Bush.
Mr Sharon's coalition controls 73 seats in the 120 member parliament. Political analyst Hanan Crystal said 13 MPs from two far-right parties the National Union and the National Religious Party would bolt if Mr Sharon moves to evacuate settlements, bringing down the government and possibly forcing snap elections.
The opposition Labour Party could save Mr Sharon from an election, but may not do so because of the ongoing police investigation against the prime minister, Mr Crystal said.
The pro-settler NRP threatened to quit the government. The party "cannot participate with a cabinet that is destroying the settlements," said NRP member Shaul Yahalom.
An umbrella group representing Gaza settlements also said that it would try to topple Mr Sharon. A Hamas leader in Gaza Said Siyam said such a withdrawal would be as a result of the "resistance," a reference to Hamas attacks on Israeli soldiers and settlers.
Mr Sharon did not tell Haaretz when the dismantling would begin, but suggested it could take some time.
"We are talking of thousands of square kilometres of hothouses, factories and packing plants. People there who are third-generation. The first thing is to ask their agreement, to reach an agreement with the residents," he said.
In the Gaza refugee camp of Rafah, meanwhile, Israeli soldiers killed four Palestinian militants in an intense gun battle. The army said troops came under fire as they attempted to arrest the militia leader, Yasser Abu Ayish, at his home.