Hamas and Fatah are "99 percent agreed" on the formation of the new unity government, but Palestinian Authority (PA) Chairman Mahmoud Abbas said he will not announce the agreement until next week.



In the meantime, Abbas is scheduled to meet with Prime Minister Ehud Olmert, and he may try to use the unity government as a lever in the discussions. Israel has said it will not negotiate with a government including Hamas if the terrorist organization does not renounce terror, promise to recognize Israel and accept existing agreements. Abbas has maintained that Israel's failure to acept the Fatah-Hamas coalition will cause an escalation in violence.