Prime Minister Benjamin Netanyahu held his Security Cabinet to discuss the transaction, such as the Israeli President Shimon Peres called the Palestinian agreement "a serious mistake."
The comments came a day after Hamas and Fatah reached an initial agreement of unity in Cairo to end a four-year conflict which has left the Palestinians with the rival Governments: an administration dominated by Fatah in the West Bank and the Hamas regime that controls the Gaza Strip. The Palestinians say the two territories for a future independent State.
While the Palestinian announcement did not address several key issues, the agreement negotiated by the repeated Egyptian hope to end to bitter infighting which weakens the Palestinians politically and killed dozens of violent clashes and repressions.
The Palestinian plan calls for the joint formation of an interim Government to prepare the way for elections next year. The Palestinians say that the move is a step towards independence. With a breakdown in the peace talks with Israel, the Palestinians have campaigned for the United Nations to recognize a Palestinian State in September, with or without a peace agreement.
Including Hamas - that Israel, the United States and the European Union consider a terrorist organization - the Palestinians have rejected essentially the Israel peace negotiations and put them hundreds of millions of dollars in us and European money aid at risk.
In the West Bank, President Mahmoud Abbas of Fatah, a proponent of peace with Israel, stressed he would retain total control on foreign policy. He said it remains ready to talk peace with Netanyahu if Israel stops its construction of the settlement on occupied land.
Seeking to blunt international criticism, he said that the interim Government would not understand the Hamas activists.
"People will be independent, technocrats, not affiliated with the factions," Abbas said at a meeting with a former moderate Israeli businessmen and heads of security group.
Abbas said that it was "too early to say" if its Prime Minister, Salam Fayyad, should remain in position. Fayyad, an economist U.S. educated, is well regarded in the West and was the main reason that the international community now sends nearly one billion dollars a year in aid to the Palestinians. Losing Fayyad could jeopardize this money.
Israel is adamant that it will engage not Hamas, which sent dozens of suicide bombers and thousands of rockets into the Jewish State and is committed to the destruction of Israel.
"We would like to see the Palestinian people to unite, but for the sake of peace," said Peres, a Nobel Prize for peace. "" "". "The world cannot support the creation of a State that part of his regime is a terrorist organization."
Minister of Foreign Affairs Avigdor Lieberman warned that the Palestinian agreement opens the door to Hamas take foot in the West Bank controlled by Fatah.
"The importance of the agreement, is that terrorists will take hold of the West Bank." "Hundreds of terrorists will flood the West Bank and therefore we need to prepare for a different situation", he told the Army Radio station.
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