Hamas invited to form government

Abbas (right) has warned Hamas must change its anti-Israel stance

Palestinian leader Mahmoud Abbas has asked the militant group Hamas to form a government, following its win in parliamentary elections in January.

The new administration will be headed by senior official Ismail Haniya.

Hamas, which opposes peace deals with Israel, now has 35 days to form a new administration.

On a visit to Egypt, US Secretary of State Condoleezza Rice warned that future Palestinian governments should recognise Israel's right to exist.

"You cannot have one foot in the camp of terror and another foot in the camp of politics," she said during a news conference with Egyptian Foreign Minister Ahmed Abul Gheit.

Mr Abbas has also asked Hamas to recognise Israel, and respect previous commitments made by the Palestinian Authority, but it has said it cannot accept such conditions.

However, observers say both Hamas and the Palestinian leadership appear keen to avoid confrontation at the moment.

Israeli sanctions

Hamas capitalised on dissatisfaction with the Fatah faction to win 74 seats of the 132 in the Palestinian Legislative Council.

It says it wants to form a national unity coalition, but several other groups, including Fatah, have said they will not take part.

Earlier on Tuesday, Mr Haniya told the Arab satellite network al-Jazeera that talks were under way "at home and abroad" - including with Fatah - to reach an acceptable government.

Israel forces have been on a three-day raid of Balata camp

The leftist Popular Front for the Liberation of Palestine (PFLP) has already agreed in principle to join a Hamas-led government.

Israel has said it will seek to apprehend any PFLP prisoners freed from Palestinian jails under a deal with Hamas.

Meanwhile, Hamas talks with the head of Fatah's parliamentary bloc were postponed on Tuesday, after the Fatah member was prevented from travelling to Gaza, a Hamas spokesman said.

Israel and its main ally, the US, have taken steps to isolate Hamas, which they brand a terrorist organisation.

Hamas has launched dozens of suicide bombings that have killed hundreds of Israelis, but has largely held to a ceasefire for more than a year.

The group, which is committed to the destruction of Israel, says the attacks are legitimate resistance to Israeli occupation.

Parliament row

Fatah officials have reacted angrily to an announcement by Hamas that it will review all decisions made by the previous Palestinian parliament in the period after last month's elections.

Former chief negotiator Saeb Erekat told that BBC that the move was unconstitutional and unacceptable.

Hamas has argued that the previous legislature had no right to pass new laws once the elections had taken place.

In a sign of possible power struggles to come, a Fatah parliamentary official protested that the new Hamas speaker and 10 of his supporters had stormed his office in Ramallah.

"They barged into the office and ordered me to leave," said Ibrahim Khreisheh - who had been appointed PLC general secretary during an 11th-hour session of the outgoing Fatah-led parliament.

The official has been since taken over by the Hamas MP designated to hold the post, Mahmud al-Ramahi.