Talks between rival Palestinian factions in Mecca ended last night with a deal to form a government of national unity, raising hopes of an end to violence that has caused at least 90 deaths in recent weeks.

However, there was uncertainty last night over whether the details of the “Mecca Declaration” that was signed by Fatah, the secular movement led by Palestinian President Abbas, and the ruling Islamist Hamas party would satisfy the conditions of Israel and its western allies for ending an international boycott of the Palestinian territories.

In Gaza, thousands of Palestinians took to the streets last night, the Strip echoing to celebratory gunfire.

The agreement document was signed by Mr Abbas and Khaled Mashal, the exiled leader of Hamas, in the presence of the Saudi King Abdullah in a palace overlooking the Kaaba — the holiest shrine of Islam.

“We have achieved results that will serve our people,” declared Mr Abbas. He added that the deal would “satisfy our people . . . and bring us to the shores of peace. This initiative has been crowned with success”.

He asked Ismail Haniya, the Prime Minister and Hamas official, to form a new government and called on it “to respect international law and agreements signed by the Palestine Liberation Organisation”.

Hamas has until now refused to abide by deals that were signed by the PLO with Israel. It won elections held a year ago on a platform of nonrecognition of Israel.

Mr Mashal vowed that Hamas would not break the agreement, and that all factions would respect the deal. He asked the international community to recognise the new government.

The agreement was said last night to be based upon a document that was drawn up last summer by Hamas and Fatah activists jailed in Israel. That document calls for a Palestinian state in the West Bank, Gaza and East Jerusalem, the areas that Israel captured in the 1967 Six-Day War.

It marked the most concrete commitment to date made by Hamas to a two-state solution to the Israeli-Palestinian conflict, but the party has continued to insist that it does not necessarily mean recognition of Israel.

The West and Israel have boycotted the Palestinian Government since it was formed in March because of Hamas’s consistent refusal to lay down arms, recognise Israel and abide by peace agreements. Tzipi Livni, the Israeli Foreign Minister, last night called on the international community to ensure that Israel’s right to exist was respected by any Palestinian government.

“We expect the international community to stick to its own requirements that were stated after the elections which Hamas won,” she said.

Under the terms of the agreement, Hamas will have nine ministerial posts in a new government, with another six going to Fatah and one each to four other parties. Along with the crucial Interior portfolio, independents would also get Foreign Affairs and Finance.

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