As rival Palestinian factions Fatah and Hamas met in Cairo to discuss reconciliation on Wednesday, Prime Minister Binyamin Netanyahu said he would not cede any more land to the Palestinians.
Earlier this month, Netanyahu indicated that he believed Hamas could overthrow the Fatah-run Palestinian Authority in the West Bank.
PA President Mahmoud Abbas and Hamas leader Khaled Mashaal were expected to meet in Cairo on Wednesday to discuss ending a long-running dispute between their rival political factions, Fatah and Hamas.
"We see the dangers clearly," Netanyahu said. "Today Abu Mazen (Abbas) is in Cairo together with the head of Hamas. They are looking into a possible unity deal between Fatah and the terrorists who have been trying to annihilate the state of Israel, and who have fired rockets at our cities."
He continued: "We know that any territory we evacuate will be seized by Hamas and Iran, and we will not let that happen."
Hamas and Fatah officials said the Cairo talks would focus on ways to implement previous reconciliation accords reached between the two movements, first and foremost the formation of a Palestinian unity government and holding long overdue presidential and parliamentary elections in the West Bank and Gaza Strip.
Following the Abbas-Mashaal summit, Fatah and Hamas officials will hold separate talks in Cairo to pursue efforts to end the dispute, the officials said.
The Hamas delegation is also scheduled to hold talks with Egyptian intelligence officials to discuss ways to solidify the current cease-fire in the Gaza Strip.