Israel is working on its own version of a border wall.
The fence is created to "prevent terrorists from Gaza from penetrating into our territory on the ground", Prime Minister Benjamin Netanyahu told media before the weekly cabinet meeting, the website France24 reported.
According to a statement from the Defence Ministry, the new barrier will be 65 kilometres long and six metres high.
It is being built along the same line cut by an underground barrier that is being constructed to prevent the infiltration of cross-border terror tunnels.
Palestinians in Gaza continuously cut the wire fence that now exists, in order to try to cross into Israel. "If the quiet is not maintained in Gaza, we will not hesitate to act".
Following the passage of the ATCA, the Palestinian Authority (PA), according to Reuters, declined further USA funding for its security forces and other branches of government, over concerns they could be exposed to anti-terrorism lawsuits. At least 246 Palestinians have been killed by Israeli fire in Gaza since March 30. Sources added that Israeli forces claimed that the knife was found in his possession and was allegedly planning to carry out a stabbing attack against the soldiers.
The deadline also sees the end of some $60 million in USA aid for the Palestinian security forces, whose cooperation with Israeli forces helps maintain relative quiet in the West Bank.
They discussed earlier Friday with Islamic Hamas chief Ismail Haniyeh on the reinforcement of a calm understanding reached with Israel in November, according to Haniyeh.