There was no chance for an effective peace process so long as Hamas rules the Gaza Strip, Yuval Diskin, head of Israel's security agency Shin Bet said on Tuesday.

Diskin made the comments to Israel's Foreign Affairs and Defense Committee, a day after US President Barack Obama informed Israeli Prime Minister Benjamin Netanyahu in Washington of his intention to launch a new regional peace effort.

While delivering the annual Shin Bet survey, Diskin addressed the volatile balance between rival Palestinian factions Hamas and Fatah.

"A joint (Fatah-Hamas) government can only be formed through firm international pressure," the Shin Bet head was quoted by local daily The Jerusalem Post as saying.

"Hamas will never voluntarily give up its rule in the Strip, and the Palestinian National Authority (PNA) will never cede its control over the West Bank."

If ballots were cast in the West Bank today, there is a good chance Hamas would win, Diskin added.

Turning to the security situation, there was no need to continue construction of the security barrier, as Israel possesses good intelligence and military capacity to prevent militant groups from the West Bank from launching attacks, he said.

Nevertheless, Diskin warned that Israel should not transfer authority of all counter-terror operations to PNA security forces, as the Israel Defense Forces is currently responsible for the majority of preventive arrests.

He also praised Egyptian security forces for their increasing successes in uncovering munition caches intended for Hamas in Gaza. Meanwhile, he warned against the illusion of a peaceful tranquility in the Palestinian coastal enclave.

"Hamas wants to maintain the calm in order to win the time it needs to reinforce and improve its standing in the field," Diskin said, estimating that about 300 smuggling tunnels are currently active in the Egypt-Gaza border.

(Xinhua News Agency May 20, 2009)