Palestinian government workers have signed an agreement to end a four month strike over unpaid wages. Officials say the deal commits President Mahmoud Abbas to start making partial salary payments before the end of the month.
It remains unclear exactly where the money will come from but Arab League countries are expected to partial provide funds.
The crisis began after the West imposed an aid embargo on the Hamas-led goverrnment over its refusal to renounce violence and recognise Israel’s right to exist.
The opposition Fatah party had backed the action which quickly turned to violence as angry government workers clashed with security officials.
The Palestinian Prime Minister, Ismail Haniyeh, has renewed his appeal for an end to internal violence and called for fresh efforts to form a unity government.
He went on TV to say that Palestinian infighting, which has claimed about 30 lives, was utterly unacceptable.
He also accused Israel and America of seeking to foment civil war in the Palestinian territories.