The ruling Islamic militant group Hamas said today a planned Palestinian unity government would not recognise Israel or accept a two-state solution to the Middle East conflict.
The stance could undercut Palestinian efforts to ease an eight-month-old Western economic boycott by forming a unity cabinet more acceptable to Israel and its closest ally, the United States.
The United States and its partners in the Quartet of Middle East mediators imposed the boycott to pressure Hamas, which took control of the Authority in March, to recognise Israel's right to exist, renounce violence and accept existing peace deals.
Hamas spokesman Fawzi Barhoum said the programme of the proposed unity government between Hamas and Palestinian President Mahmoud Abbas's Fatah faction "will not recognise Israel and will not include accepting the two-state solution."
"We reject the two-state solution, which is the vision of US President George Bush, because it represents a clear recognition of Israel," Barhoum said.
"Our position in this regard remains unchanged. We reject joining in any government that recognises Israel."
The United States and the European Union regard Hamas as a terrorist organisation and have cut off direct aid to its administration. As a result, the Palestinian government has largely been unable to pay its 165,000 workers since April.
Yuval Diskin, head of Israel's Shin Bet security service, told a parliamentary committee on Tuesday that Israel should be prepared to widen its military operations in Gaza because of the growing strength of Hamas and other militant groups.
Last week 19 Palestinian civilians were killed in an Israeli artillery barrage on the Gaza town of Beit Hanoun. Israel said the barrage was caused by a technical failure.