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
Graham Taylor has refuted claims he was by the Football Association to limit the number of black players he selected when England boss.
A beautiful and historic Oxfordshire manor house with “the finest view in England” is being offered for free – but there is a catch.
Make-A-Wish Foundation helped one young boy with an incurable heart condition star as 'Fast Heat' in his very own movie.