Netanyahu told members of the Knesset's Foreign Affairs and Defense Committee that he recognizes Israel and the United States "have a disagreement" about Israel's "need to enter Rafah."
But, he added, there was no disagreement "about the need to eliminate Hamas."
Netanyahu confirmed Friday that Israel Defense Forces were preparing for ground operations in Rafah after he approved his right-wing government coalition's plan for the offensive.
"We do not see a way to eliminate Hamas militarily without destroying these remaining battalions," he said to members of Israel's parliament, adding how "we are determined to do it."
President Joe Biden expressed concerns to Netanyahu on Monday about the possible attack on Rafah. The White House said Israel did not have a plan to safely move Palestinian civilians from the area before an attack.
More than 31,000 Palestinians have been killed since Hamas carried out its Oct. 7 attack on Israel, according to the Gaza health ministry.
Netanyahu said that "out of respect" for the American president, the two leaders had agreed on a way in which the United States "could present their ideas to us, especially on the humanitarian side, which we, of course, share this desire to allow an orderly exit of the population and provide aid to the civilian population."
Israel agreed to send to Washington "a senior interagency team composed of military, intelligence and humanitarian officials," according to White House officials.
While U.S. National Security Adviser Jake Sullivan said Monday that Hamas should not be granted a safe haven anywhere, he called a possible Rafah ground operation near Egypt's border "a mistake."
The IDF offensive -- where over 1 million Palestinians are taking refuge in a city which had a pre-war population of nearly 250,000 -- "would lead to more innocent civilian deaths, worsen the already dire humanitarian crisis, deepen the anarchy in Gaza and further isolate Israel internationally," he said.
Netanyahu told the Knesset that Israel is looking at the feasibility of private companies or other outside organizations being able to distribute crucial aid to Palestinians in Gaza.
"From Israel's standpoint, there is nothing preventing Gazans from leaving, but there aren't countries in the world that are ready to receive them," he said.
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