A senior PLO official, Jabril Rajoub, told Army Radio on Thursday that the reconciliation agreement signed Wednesday between Fatah and Hamas is based on Abbas's terms, including working towards a two-state solution that recognizes Israel's existence.

Hamas will have to implement Abbas's policies, Rajoub stressed.

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"We weren't willing to sign the reconciliation agreement without it being clear to all factions that we are driving forward our nation to a two-state solution," he said.

Rajoub hopes that peace between Israel and the Palestinians is still possible.

"I hope that Israel will allow Abbas to continue peace negotiations, on the basis of two states for two peoples."

The reconciliation agreement is an internal Palestinian matter, Rajoub said.

"We don't want to ruin negotiations completely. I hope Israel will allow Abbas to continue talks as well as stand up to the challenge of settlements on Palestinian land," he challenged.

Hamas and Fatah announced Wednesday that they have reached a “historic” agreement to end their differences and form a Palestinian unity government.

The announcement came one day after a senior PLO delegation arrived in the Gaza Strip for talks with Hamas leaders on ways of ending the Hamas-Fatah dispute and achieving national reconciliation.

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