A Palestinian unity government has taken office following a swearing in by President Mahmoud Abbas.
It comes after parliament earlier passed a vote of confidence in the power-sharing partnership between the rival Hamas and Fatah groups.
The development has been welcomed by the Foreign Affairs Minister, Dermot Ahern, who said there is now a significant opportunity which should not be lost to build a real momentum for lasting peace.
The Palestinian Prime Minister designate, Ismail Haniyeh, has said the main goal for his new government of national unity is the creation of a Palestinian state.
Addressing a parliamentary session called to approve the new administration, Mr Haniyeh said his government would work on maintaining a truce if Israel stopped what he called its 'occupation aggression'.
He said the Palestinian people retained the right of resistance by all means.
Miri Eisin, an advisor to the Israeli Prime Minister, said the new coalition represented a radicalisation of Palestinian politics.
US State Department spokeswoman Nancy Beck said any Palestinian government must renounce violence, recognise Israel and respect peace agreements.
The Palestinian President, Mahmoud Abbas, has urged western countries to end their boycott of the Palestinian Authority and to recognise the new government of national unity.
Palestinians hope the new government will bring an end to an international boycott imposed after Hamas won the country's election in January last year.
The EU and the United Nations have indicated there could be a softening in the boycott, but Israel has said it will not deal with the new administration.
Hamas rejects international calls for it to recognise Israel and renounce violence.
