"I have given the order to plan for the evacuation of 17 settlements in the Gaza Strip," the right-wing prime minister told the Haaretz newspaper. "I am working on the assumption that in the future there will be no Jews in Gaza."
A senior government source said it would happen if talks with the Palestinians hit a dead end.
His plan entails removal of all but two or three Jewish enclaves in the 360-sq-km (139-sq-mile) coastal strip, where over a million Palestinians live in poverty beside a few thousand settlers who control 21 per cent of the land.
Sharon said his plan "has to be done with American agreement and support."