Hamas and Fatah disagree on when Mr Abbas's term should end
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Egypt has called on rival Palestinian factions Fatah and Hamas to form a joint government, as part of a proposal to be discussed in talks next month.
The draft, presented on Monday, calls for a restructuring of security forces and a deal on the timing of elections.
Palestinian Authority President Mahmoud Abbas's Fatah movement and the militant group Hamas disagree over whether Mr Abbas's term should end in January.
The groups have been deeply divided since Hamas seized Gaza last year.
The Egyptian proposal calls for the formation of a "national consensus government" and the restructuring of the Palestine Liberation Organisation (PLO) to include Hamas and other Palestinian groups.
The plan was developed after talks with 13 Palestinian factions, who have been invited to return to Cairo on 9 November for further negotiations.
Polls row
Egypt had previously proposed establishing a unity government of figures acceptable to all factions, but analysts say the differences between the two sides mean hopes of an effective deal are not high.
A Hamas spokesman told AFP news agency that the group would "not reject" the plan, but wanted some points modified and others clarified.
Fatah officials told Reuters news agency that any transitional government should be committed to past PLO agreements with Israel, something Hamas rejects.
Mr Abbas's term in office formally ends on 8 January 2009.
The current parliament, which is controlled by Hamas, is not due to hold elections until January 2010.
Hamas MPs have urged Mr Abbas to hold presidential elections by 8 January, and said they would no longer recognise his legitimacy after that time.
Correspondents say this would further deepen the rift.
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