Ahmed Qurei (right) was chosen as prime minister last month
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The man appointed to head an emergency Palestinian cabinet has stressed his commitment to peace and ending "chaos".
Ahmed Qurei was named prime minister by Yasser Arafat to run the new cabinet for a maximum term of two months.
Mr Qurei said his aim was to "get out of this situation of chaos in the Palestinian territories".
The territories are tense after a Palestinian suicide bomber killed 19 Israelis including children in a packed Haifa restaurant on Saturday.
That attack sparked renewed calls in Israel to eject Mr Arafat.
The BBC's Barbara Plett in Ramallah says Mr Arafat's decision, which ends lengthy consultations about the cabinet's composition, is a desperate measure to project leadership where there has been none.
He was reportedly consulting his security chiefs on Monday as the Israeli Government maintained silence over his fate in deference to the Jewish holy day, Yom Kippur.
Israeli troops have sealed off part of the Palestinian territories for the
holy day and reportedly shot dead a Palestinian man when he crossed a closed road in the Gaza Strip on Monday.
Hamas militants fired mortars
at Jewish settlements in Gaza overnight, in retaliation for an Israeli air strike on an alleged Palestinian militants' base in Syria.
Israeli anger
Mr Qurei insisted the Palestinian leadership needed to "assert control over security".
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EMERGENCY CABINET
Prime Minister Ahmed Qurei
Foreign Minister Nabil Shaath
Finance Minister Salam Fayad
Interior Minister Nasser Yousef
Chief Negotiator Saeb Erekat
Education Minister Nabil Abul Hummus
Local Affairs Minister Jamal Shobaki
Jawad Tibi and Abdel Rahman Hamad (positions not given)
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However, the state of emergency will make little difference to ordinary Palestinians as their lives are largely controlled by the Israelis, our correspondent says.
At the same time, Mr Arafat may hope that by getting a government in place quickly he can ward off an Israeli strike against him.
Mr Qurei added that he was committed to implementing the US-sponsored "roadmap for peace" and observers say America appears willing to give him a chance.
But he warned that he would not risk a civil war by using force against Palestinian militants.
"We will not confront, we will not go for a civil war," he told the Associated Press.
"I will not listen to the Americans, I will listen to our national rights," he said.
Israel decided in principle to "remove" Mr Arafat after 15 people were killed in twin suicide bombings in Jerusalem and Tel Aviv on 9 September.
It has not said when or how it might carry out such a threat but acknowledges a raid on Mr Arafat's Ramallah headquarters could result in his death.
Mixed cabinet
The decree appointing the new cabinet bypasses the usual ratification by the Palestinian legislative council.
Mr Qurei was named to the prime ministerial post last month and had planned to present a larger cabinet to parliament for approval this week.
The new cabinet, which is eight strong, is to be sworn in on Tuesday and will immediately hold its first meeting, Mr Qurei announced.
The cabinet includes both allies of Mr Arafat, and members from the government of the previous Prime Minister, Mahmoud Abbas, who resigned after a power struggle with Mr Arafat.