The plan reportedly calls for creating 11 rail lines extending to 475 kilometers of rail-track through the West Bank.
The network would reportedly include a line passing through Jenin, Nablus, Ramallah, Jerusalem, illegal settlement Maale Adumim, Bethlehem and Hebron, Haaretz said.
Another line would run along the Jordan Valley and then on to Haifa.
No date has been set for carrying out the proposal and there are several legal, diplomatic and economic obstacles to the projects implementation, Haaretz said.
The Hague Regulations prohibit an occupying power from undertaking permanent changes in an occupied area unless these are due to military needs in the narrow sense of the term, or unless they are undertaken for the benefit of the local population, rights group B’Tselem say.