Gaza-based Islamist group Hamas and the Palestine Liberation Organisation have announced a unity pact, President Mahmoud Abbas has said.
The move has widened divisions in US-brokered peace-talks with Israel.
The reconciliation comes after seven years of internal bickering within the Palestinian groups and raises the possibility of a unity government and national elections within six months.
However, Israel has criticised the deal, saying that President Abbas has chosen "Hamas over peace" and cancelled a session of peace talks in Jerusalem.
More top news
At least one person has died and 18 homes have been destroyed as wildfires rage through southern California.
Slightly cooler temperatures will replace the recent muggy weather while some areas will see heavy rain.
Andre Greipel won the final stage of the 2016 Tour de France as Chris Froome crossed the line arm-in-arm with his Team Sky team-mates