The three-hour meeting in Gaza, which involved leaders of the Hamas and Islamic Jihad groups, did not produce the ceasefire declaration that had been hoped for.
But reports say there was a discussion about the Palestinian Authority joining with the militant groups to form a single national leadership.
Seven-year-old killed in West Bank
Shortly after the meeting ended, Palestinian gunmen opened fire on a car in central Israel near the West Bank, killing a seven-year-old girl and wounding another child and an adult.
Meanwhile, as the internationally backed 'road map' peace plan comes under increasing pressure, the US Secretary of State, Colin Powell, is set to travel to the region on Friday for talks with Israeli and Palestinian leaders.
