Mecca:ThePalestinian rival Hamas and Fatah factions agreed to form a national unitygovernment after two days of intensive negotiations and resolved to end monthsof violence between the groups. 

Palestinian sources said Hamas' Ismail Haniya would remainprime minister, while the divisive interior and foreign ministries will betaken over by independents.

Fatah named Ziad Abu Amr, an independent close to Fatah, asforeign minister. Hamas will choose an independent as interior minister  thelargest sticking point in previous talks. Fatah will appoint a deputy toHaniya, the sources added Thursday.

Palestinians hope the unity government will put an end to ongoingviolence between the two factions in the West Bankand Gaza Strip. The sides agreed to end all internal fighting and reform thePalestinian Liberation Organisation (PLO). 

But there was no clear word on the platform of the newgovernment, specifically whether Hamas agreed to accept the key demand of theinternational quartet - the US,the European Union, Russiaand the UN - to recognise Israel.

Speaking at a signing ceremony in Mecca, Palestinian President Mahmoud Abbas ofFatah wished "full success to the new government" and said he hopedthis agreement will lead to an end to the violence.

Abbas hopes a unity government will ease an economic anddiplomatic boycott by western nations, imposed on the Palestinian governmentafter Hamas won power in elections last year.

The quartet has demanded that Hamas renounce terrorism andhonour past Israel-Palestinian agreements.

According to the points reached in Mecca,the new government will "respect" all previous agreements signed bythe PLO, but Israelis not mentioned. Also, the PLO will continue to be responsible fornegotiations with Israel,and not the new government.

Israeli foreign ministry spokesman Mark Regev said lateThursday that any Palestinian government which wants international recognitionmust recognise Israel, renounce terrorism, and accept signed agreements in thepeace process, including the road map" a quartet-sponsored peace plan.

The USalso said any new Palestinian government must renounce violence and accept Israel's right to exist as part of conditions towin USsupport.

"It's important to have a government that will be afull negotiating partner with Israel,"White House spokesman Tony Snow said shortly before the agreement wasannounced.

Under the deal, Hamas will not have a majority of thegovernment ministries, but will hold the most of any faction, according to thePalestinian sources. Hamas will receive eight ministries, while Fatah will getsix.

 Another sixportfolios will be divided between independents.

Salam Fayyad, a member of a former Fatah-led government andnow part of a smaller faction, will become finance minister, according to thesources.

During the ceremony in Mecca,Haniya called for the right to return of Palestinian refugees to the homes thatthey fled during the 1948-49 Arab-Israeli war, and for Israel torelease Palestinians held in its jails.

Calling for a 'new era of resistance' Haniya saidhe would work to remove the international boycott on the Palestinian Government.

Palestinian sources say Hamas would get the ministries ofeducation, al-Waqf (Islamic property), labour, municipal affairs, sports andyouth, economics, justice and communication. Fatah would get health, socialaffairs, public work, transportation, agriculture and prisoners' affairs.

Addressing sceptics of the latest Palestinian agreement,Khaled Mashaal, the Damascus-based Hamas leader, said they are wrong andwe pledge to uphold these agreements.

King Abdullah of Saudi Arabia, who hosted themeeting, said the talks would hopefully serve to alleviate the sufferingof the Palestinian people.

The bitter internecine fighting between Fatah and Hamas hasclaimed 87 lives since the beginning of the year, according to the UN Officefor the Coordination of Humanitarian Affairs.