Hamas and Fatah to hold talks in Cairo

Egyptian President Mohammed Morsi is set to mediate talks in Cairo between the leaders of Fatah and Hamas to help implement a unity pact signed in 2011.

Egypt helped broker the deal between Palestinian leader Mahmoud Abbas, who heads the Fatah party, and Hamas's Khaled Meshaal.

The Islamist movement ousted Fatah from Gaza in 2007 after winning Palestinian elections the previous year.

Observers say tensions appear to have eased in recent months.

On Wednesday Abbas, the leader of the Palestinian Authority (PA), and Meshaal will first "meet Egypt's intelligence chief before holding a three-way meeting with President Morsi," Egyptian spokesman Yasser Ali told the AFP news agency.

The reconciliation accord signed two years ago was meant to pave the way for a joint interim government and joint elections in 2012 but negotiations stalled.

Last October, Hamas boycotted local elections held in the West Bank, the first Palestinian polls in more than six years.

But observers say there have been signs of warming ties between the rivals ahead of Wednesday's talks.

Last Saturday, Hamas allowed Fatah to hold rallies in Gaza for the first time since 2007.

Hundreds of thousands of supporters of Abbas held mass gatherings in the coastal enclave to mark Fatah's 48th anniversary.

Meanwhile last month, supporters of Hamas celebrated their movement's founding with a rare rally in the West Bank, which is governed by the PA.

In a recent speech, Meshaal urged "reconciliation and national unity of the Palestinian ranks".

"Palestine is for all of us, we are partners in this nation. Hamas cannot do without Fatah or Fatah without Hamas, or any movement," he said.

The Islamist Hamas group and the secular Fatah fundamentally disagree in their approach towards Israel.

Hamas has refused to renounce violence, recognise Israel's right to exist or accept peace accords between the Fatah-dominated Palestinian Authority and Israel.

Hamas has been designated a terrorist group by Israel, the US and the EU.

Relations between Fatah and Hamas collapsed in June 2007 when Abbas ordered the dissolution of the Hamas-led unity government amid deadly clashes between the factions in Gaza.