The Hamas-led Palestinian government has resigned after 11 months in power, clearing the way for the establishment of a national unity administration with the rival Fatah faction led by President Mahmoud Abbas.
Mr Abbas has asked the outgoing Hamas Prime Minister, Ismail Haniyeh, to form a new broad-based coalition, with ministers drawn from both groups.
It is believed the unity government can help end a Western financial boycott and improve relations with Israel.
However, the US has said it will not judge the new administration until it has been formed.
The US has repeatedly stated that it will boycott any Palestinian government that does not recognise Israel.