It's all behind-closed-door conversations, but one can only assume some form of self-governance in Gaza given the US continues to push for a two-state solution despite supporting the Israelis as they, you know, wipe out one of those states.
What Bibi is saying, here, is that even that small modicum of Palestinian agency will be eliminated and Gaza will formally become the open air prison it's unofficially been for decades.
I'm willing to bet there will never be any kind of voluntary transfer of power.
I firmly expect that Israel's intention is to drive out the Palestinian population and annex Gaza once and for all. Nothing else explains their strategy of mass infrastructure destruction, the regular bombing of civilians, and the regular drumbeat of suggestions of foreign nations like Canada taking in Palestinian refugees. They're clearly attempting to render Gaza utterly unlivable.
I mean, what else could possibly be their endgame given the level of destruction Israel has engaged in? A vibrant and functioning Gaza will never be tolerated by the Israeli far right (they literally just finally openly rejected a two state solution, though let's face it, in practice that's nothing new). Containment has failed. The only thing left is destruction.