Hamas and Fatah have signed a groundbreaking reconciliation deal, amid the breakdown of the Palestinian Authority’s peace talks with Israel.

Representatives from the groups announced the deal today after a meeting in the Gaza Strip.

After years of hostility between the two parties following the 2007 split, they now plan to form an interim unity government within five weeks. This will be followed by elections within six months.

Rumours surrounding the deal have been circulating since party representatives met in Egypt on Sunday.

Israeli Prime Minister Benjamin Netanyahu earlier said that PA President Mahmoud Abbas had decided to pursue peace with Hamas, a terrorist group, instead of Israel.