Hamas and Fatah have reached agreement over the make-up of a unity government, the Al-Jazeera TV network reported on Tuesday night.
According to the report, the two rival parties are expected to announce the new unity government in Cairo next Tuesday.
Al-Jazeera said that Hamas and Fatah also agreed on the identity of the new prime minister, but did not reveal his name.
It said that the agreement would be signed in Cairo between Palestinian Authority President Mahmoud Abbas and Hamas leader Khaled Mashaal.
PA Prime Minister Salam Fayyad would not be part of the unity government, the report said.