Palestinian President Mahmoud Abbas on Monday urged rival Fatah and Hamas conferees in Cairo to overcome their differences to form a unity government.

Abbas, addressing a young Palestinian parliament association at his office, called on Hamas, which rules the Gaza Strip since June 2007, to agree on forming a government that accepts the signed interim treaties with Israel.

Leaders of rival Fatah and Hamas movements began another round of dialogue in Cairo on Monday, aimed at reaching an agreement on forming a unity government that prepares for elections before January 25 next year.

"I call on Cairo dialogue to agree on forming a government that will run the country's affairs, reunite it and rebuild Gaza, then go to elections," said Abbas, adding that "we cannot rebuild Gaza without this government."

Abbas stressed his demand for all the Palestinian factions, including Hamas, to accept the signed agreements with Israel.

Hamas movement refuses to abide by the international requirements related to recognizing Israel and the signed peace agreements and condemning violence.

Abbas pledged to guarantee "honest elections" and that if Hamas wins, he will hand over power to the radical movement "because we believe in democracy."

Hamas movement, which won the latest parliamentary elections in January 2006, has formed two governments. Abbas deposed the national unity one after the movement took over the Gaza Strip by force.

Abbas added that if elections were not held by January 24, then "there will be no legitimacy to anyone -- not the government, not the parliament and not the president."

Meanwhile, Abbas said he wants to continue peace talks with Israel, but reiterated that these talks would only resume on the basis of the Arab peace initiative issued at the Arab summit held in Beirut in 2002.

"Talks can be resumed if Israel accepts the two-state solution and the road map peace plans which calls for total freeze of settlement activities and removal of checkpoints," said Abbas.