A Fatah official on Monday said the upcoming dialogue with Islamic Hamas movement in Cairo will witness progress on several pending issues.

"There are positive indications that a progress will be made in this round," said Nabil Shaath, a member of Fatah's central committee, led by Palestinian President Mahmoud Abbas.

He said Egypt continued its contacts and efforts with the Palestinian factions to hurdle the obstacles that prevented the Palestinians from agreeing on a unity government.

The unity government will replace Hamas' administration of the Gaza Strip and the Fatah-backed government of West Bank. The two feuding governments came into being following Hamas' violent takeover of the Gaza Strip in 2007.

Regarding Abbas' plan to ask his West Bank Prime Minister Salam Fayyad to expand the government, Shaath said this government will remain temporary "and will be dissolved as soon as an agreement on a unity government is reached."

Among the issues Hamas and Fatah try to settle is the reform of the security services and the Palestinian Liberation Organization (PLO).