A unity government is to take control of the Gaza Strip after a breakthrough in talks between Hamas and Fatah officials in Cairo.
The deal could strengthen their hand in talks with Israel next month.
The factions had agreed to the make up of a national unity government earlier this year but a dispute over public sector worker pay strained their relationship.
“Fatah and Hamas have agreed to support the political efforts of the Palestinian leadership, which will continue working because there is a full schedule to get through,” said Fatah negotiator, Azzam Ahmed.
“What we have achieved at this point is to facilitate a route for the conference and to make sure that the donors feel safe about their money. They can monitor the process with the United Nations from beginning to end,” explained Hamas´ Political Bureau Chairman, Moussa Abu Marzouk.
Weeks of conflict in Gaza between Hamas and Israel ended late last month.
More than 2,100 Palestinians were killed along with 67 Israeli soldiers and six civilians.
The Palestinian Authority has claimed that reconstruction work would cost over six billion euros.
Euronews’ correspondent in Cairo, Mohammed Shaikhibrahim, said that “despite the agreement, the question remains over its implementation and a timetable. Security, border controls and weapons in the Gaza Strip are the most important challenges ahead.”