The Palestine Liberation Organisation has approved President Yasser Arafat's decision to give in to international pressure to appoint a prime minister.
On Thursday Mr Arafat nominated senior PLO official Mahmoud Abbas as prime minister of the Palestinian Authority.
'The PLO Central Council has approved the principle of a premiership being created and Yasser Arafat's recommendation that Mahmoud Abbas carry out the job,' the Palestinian labour minister, Ghassan al-Khatib, said.
The establishment of the premiership still has to be approved by the Palestinian parliament, which is set to meet on Monday.
Mr Arafat has been under intense pressure in recent months to reform his administration, accused by Israel and the United States of widespread corruption and links to militant groups.
Under further pressure from the EU, which maintains better relations with the Palestinian leader, he pledged to appoint a premier after a meeting in mid-February.
Top Hamas strategist killed in Gaza
Israel killed the top Hamas military strategist and three other militants today in a helicopter missile strike against a car in the Gaza Strip.
Ibrahim al-Maqadma, aged 51, was a founder of Hamas and the most senior Palestinian militant to be killed by Israel in a 29-month-old Palestinian uprising.
Hamas to target top Israelis
A senior Hamas official said the group should target Israeli politicians, after its security chief was killed in Gaza City.
Abdul Aziz al-Rantissi urged Hamas' military wing, the Ezzedine Al-Qassam Brigades, 'to point their guns at the Israeli political leadership, the politicians, lawmakers and members of government in Israel to avenge the latest killings.'
Israel killed four Hamas militants in a helicopter strike on a car in the Gaza Strip.
Ibrahim al-Maqadma, 50, a founder of Hamas and senior leader of its military wing, was killed with three other militants when four Israeli helicopters blasted his car with missiles.
The attack came one day after Hamas gunmen killed two Israelis in a West Bank settlement, hours after Israeli troops and tanks seized a chunk of the northern Gaza Strip.