In a statement, Alaa Youssef said the issue has not been discussed or presented "on any level."
"It's unimaginable to get into such unrealistic and unacceptable proposals especially in Sinai, which is a dear part of the nation," he said.
His remarks came at the end of a meeting today between top commanders of the Egyptian army and police with Egyptian President Abdel-Fattah el-Sissi in Cairo.
The reports of establishing a Palestinian state in Sinai were first mentioned by an Israeli deputy minister named Ayoub Kara on his Twitter account. The Israeli press published it, causing an outcry in Egypt.
Disclaimer: No Business Standard Journalist was involved in creation of this content