The United Nations, the United States, the European Union and Russia have said any new Palestinian government led by the militant group, Hamas, must commit itself to non-violence and recognition of Israel if it is to continue receiving international aid.
Senior representatives of the so-called quartet grouping issued the joint statement after a meeting in London to discuss Hamas's election victory.
While US Secretary of State Condoleezza Rice has pushed a tough line against Hamas from the outset, some of her European colleagues are ready to give the group a month or two in power to change its ways.
Officials have acknowledged that the prospect of pulling hundreds of millions of dollars in assistance from one of the world's neediest populations raised delicate humanitarian concerns.
It is also possible that an aid cutoff would force Hamas further into the arms of countries such as Iran or Syria and ignite an anti-western backlash among the Palestinian people.
Meanwhile, Israel has declared that it has decided to freeze funds to the Palestinian Authority, fearing the money could end up being used to attack and kill Israeli citizens.
The authority faces a financial crunch if Israel withholds monthly payments of up to $50 million. The money pays the salaries of tens of thousands of Palestinian government employees.
