Mr Abbas will be hoping to lead his Fatah party to a strong showing
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The long-delayed Palestinian elections will be held on 25 January 2006, the Palestinian leader Mahmoud Abbas has announced in Gaza.
The parliamentary elections were originally scheduled for last month, but were postponed indefinitely.
Last week there were suggestions the vote would be held on 21 January, but the date clashed with a Muslim holiday.
Hamas, the militant rival of Mr Abbas' Fatah, is expected to do well in the elections, the first in a decade.
Various reasons have been given for the delay, including Israel's pullout from the Gaza Strip and disputes over electoral reform.
Unity rejected
Many observers suggest the real reason was fear that Hamas would do well.
The militant group refused to participate in legislative elections in 1996, but did well in local elections earlier this year.
It has said it will field candidates in the poll in January.
Fatah has lost public support over its alleged corruption and what many Palestinians see as its mismanagement of the Palestinian Authority (PA).
Militant groups including Hamas, Islamic Jihad and the Popular Front for the Liberation of Palestine rejected an offer from Mr Abbas to form a unity government in July.