A senior Palestinian official denied on Thursday earlier reports saying that Palestinian President Mahmoud Abbas intends to form a new Palestinian government next week.

The report, published by "al-Manar" daily based in Jerusalem, quoted well-informed sources as saying that Abbas intends to designate current Prime Minister Salam Fayyad to form a new Palestinian government next week.

Yasser Abed Rabbo, Secretary General of the PLO's executive committee said in a statement sent to reporters "the reports are rootless," adding "this subject has not been raised even for discussion and the current acting government would remain until President Abbas makes his mind."

Rival Fatah and Hamas movements are still negotiating the formation of a national accordance government for both Gaza and West Bank. However they still disagree on the political platform of the new unity government.

After Hamas took over Gaza Strip by force in June 2007, Abbas sacked the three-month old Hamas-led national unity government, and nominated Fayyad to form a caretaker government to rule the Palestinian affairs.

But Hamas leaders in Gaza rejected Abbas decree and continued acting in the Gaza Strip, which is under a very tight Israeli blockade. The talks between the two rival sides hadn't yet achieved any breakthrough.

Meanwhile, Hamas threatened that if Abbas forms a new government headed by Fayyad again, it would name a new interior minister to succeed late minister Said Siam, who was killed during January Israeli offensive on Gaza.

"If Abbas forms a government headed by Fayyad, for us (Hamas) it means that Abbas undermines all attempts to bridge the gaps in the dialogue to reach an agreement and end the rift," said Ismail Radwan, Hamas spokesman.