Palestinian Authority President Mahmoud Abbas on Saturday said that a Palestinian unity government with Hamas must support a two-state solution.

In a Ramallah speech, Abbas went on to say progress was being made toward establishing a Palestinian unity government "that will be committed to our values and will respect agreements previously signed by the Palestinian Authority," Israel Radio reported.

However, Hamas official Aiman Taha stressed that his group rejects any kind of preconditions and noted that Abbas's speech was lowering the prospects that the reconciliation talks between the Fatah and Hamas will succeed.

"Hamas will never agree to sit in a government that recognizes Israel," he reportedly said.