A Palestinian official on Wednesday expected that president Mahmoud Abbas will form a new government if his Fatah party and Hamas rivals failed to reach an agreement in an upcoming round of dialogue.

If the dialogue, which will convene in Cairo from May 16 to 19,fails, "the president will form a new government which will put a new strategy in dealing with Hamas and the internal Palestinian situation," said Abbas Zaki, the Palestinian ambassador to Lebanon.

During the national dialogue, which started in March, Hamas and Fatah failed to reach an agreement on forming a unity government replacing Hamas's administration in the Gaza Strip and the Western-backed government which is based in West Bank.

The Cairo talks aim at reconciling Hamas and Fatah and end the aftermaths of Hamas' violent takeover of Gaza in 2007.

Earlier reports said that Abbas will ask the current premier Salam Fayyad to form the new expanded government. Fayyad's government was formed as a caretaker one after Hamas ousted Fatah from Gaza.

Zaki said Abbas will visit Washington on May 28 and the formation of the new Palestinian government is expected to take place prior to that date.

Hamas, which dominates the Palestinian Legislative Council (PLC), said that it will not recognize the new government if Abbas formed it without consultations with the Islamic movement. Hamas also does not recognize Fayyad's government since it was not put for confidence voting by the PLC members.