There have been rumors like this for years, and former Egyptian president Mubarak claims that Netanyahu asked him to give parts of the Sinai to Palestinians in 2010. He says that he resisted such plans since the 1980s when the Americans suggested relocating Palestinians from Lebanon to the Sinai.
The rumors resurfaced in the past two years in context of the Trump "Deal of the Century."
Now they have come up again. The map shown above was supposedly published by YNet in Israel but I cannot find it; it appears to be a screenshot of a video. According to this map and the rumors, the US would pay Egypt billions to purchase massive amounts of the Sinai which would become attached to Gaza in exchange for Israel annexing parts of the West Bank.
Israeli analysts bring up versions of this idea every so often. Just this week the BESA center published an article noting that Gaza's situation is partly the result of the Israel-Egypt peace plan in 1979:
Gaza could no longer develop westward into the potential open space between Rafah and El-Arish. The Strip was thus closed in the Egyptian direction and deposited on Israel’s doorstep as an urban pressure cooker on the verge of explosion.The Palestinian media is of course against the idea, because even expanding their territory is anathema if it would help Israel. Some are even arguing that the boundaries of British Mandate Palestine are sacrosanct and must never be changed an inch, as they are burned into the consciousness of all Palestinians.
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