About 20% of the country’s population are Palestinian citizens of Israel.
A truck that hit a bus stop in central Israel last month was driven by a man identified by authorities as a Palestinian citizen of Israel.
Many Israeli Arabs have also been convicted for posting support or sympathy for Hamas on social media since 7 October last year.
Both the justice ministry and the attorney general’s office have raised concerns about how the legislation, which will likely be challenged in court, can be enforced.
Eran Shamir-Borer, a senior researcher at the Israel Democracy Institute and a former international law expert for the Israeli military, said that if the legislation reached the Supreme Court, it would likely to be struck down.
“The bottom line is this is completely non-constitutional and a clear conflict to Israel’s core values,” Mr Shamir-Borer told the Associated Press news agency.
Those deported will be sent to Gaza or to “another destination determined according to the circumstances”.
Other than the military, ordinary Israeli citizens are not legally allowed to enter Gaza.
About 100 Israelis are thought to be being held hostage in Gaza by Hamas, including around 60 who are thought to still be alive.
Israeli citizens would retain their citizenship even after being expelled from the country. They would not be allowed to return for between seven and 15 years.
Permanent residents could be deported for between 10 and 20 years.
The majority of the Palestinian population of East Jerusalem hold permanent Israeli residency.
In addition, a five-year temporary order was approved allowing for prison sentences for children under the age of 14 convicted of murder as part of an act of terrorism or as part of the activities of a terrorist organisation.