According to reports, the two major terrorist factions involved in governing the Palestinian Authority, Fatah and Hamas, have reached an understanding surrounding the “prisoners’ document” that sparked violent clashes between the rival groups.



Those clashes reached their peak two weeks ago when Fatah supporters stormed and burned PA parliament and cabinet offices in Ramallah, which are controlled by the Hamas.



A source in the PA said a memorandum of understanding between the two sides was scheduled to be signed Tuesday evening at a ceremony to be attended by Abbas and Isma’il Haniyeh, the PA prime minister who heads the Hamas.



“If there are no surprises, the memorandum will be signed tonight, with the participation of all the PA factions before the president [Abbas] and prime minister Isma’il Haniyeh,” said a source in the PA.



The “prisoners’ document,” which was drafted by convicted Arab terrorists serving time in Israeli jails, advocates establishing an independent Arab state in Judea, Samaria, and Gaza. The Hamas initially opposed the document because setting up an Arab state only in those territories implies recognition of the State of Israel.



The Fatah supported the document while denying it expressed recognition of the Jewish state.



As tension between the rivals intensified, Abbas announced he would hold a public referendum on the document. The Hamas interpreted this as a threat to its authority and violence ensued. Dozens of Arabs were killed and wounded in violent clashes between Hamas and Fatah militia forces, particularly in Gaza.



According to the PA source, Abbas has agreed to cancel plans for holding the referendum which was scheduled for late July.



The memorandum, if signed, might pave the way for the Hamas to set up a unity government with Fatah and Abbas.



On the issue of kidnapped soldier, Corp. Gilad Shalit, Abbas reportedly has warned prime minister Haniyeh that Israel has threatened to strike Haniyeh and other senior Hamas government officials, if Shalit is not safely returned.



If Abbas and Haniyeh agree to work side-by-side in a unity government, the ability of the Israeli government to single out the Hamas as an address for retaliation over terrorist attacks may be severely hampered.



Sources in the Palestinian Authority said the possibility of the IDF carrying out a major military operation in Gaza, following the kidnapping of Corp. Shalit, served as a catalyst for bringing together the two rival terrorist factions.