Palestinian President Mahmoud Abbas, bolstered by a visit by US Secretary of State Condoleezza Rice, said today he might opt to dissolve the Hamas-led government and unity talks with the group were dead.
Ms Rice promised at a news conference with Mr Abbas to "redouble ... efforts to improve the conditions of the Palestinian people" and press Israel to ease a closure of Gaza border crossings.
Mr Abbas made clear his patience was running thin in efforts to persuade Hamas to soften its policy towards Israel and form a unity government with his Fatah faction which Palestinians hope can lead to an end to a Western aid embargo.
"If this doesn't happen in the near future, all options are open," he said at a news conference with Ms Rice. "But the only option I reject is civil war."
Twelve Palestinians have been killed in fighting between rival factions over the past week, the worst internal violence in Gaza and the occupied West Bank in a decade.
In comments to reporters before he met Ms Rice, Mr Abbas said he would use his "constitutional powers" under Palestinian law at the appropriate time, a clear reference to a possible edict to dismiss the government and hold new elections.
"The dialogue now does not exist," Mr Abbas said about talks with Hamas, which has rejected Western demands to recognise Israel, renounce violence and accept existing interim peace deals with the Jewish state.
Ms Rice is on a regional visit partly aimed at bolstering the moderate Abbas in his power struggle with Hamas. The Islamist group, dedicated to Israel's destruction, defeated Fatah in January elections and formed a government in March.
Mr Abbas's chief of staff said the president gave Ms Rice a "working paper" to convey to Israel on ways to move towards a resumption of peacemaking and ease Israeli restrictions on Palestinian trade and travel.
Israel has kept Gaza crossing points largely closed since militants abducted an Israeli soldier in a cross-border raid from the territory in June. He is still being held.
"It is my hope that it will not be very long before there can be a meeting between the president and (Israeli) Prime Minister Olmert. I know that they will choose the time, but we hope that it will take place in the near future," Ms Rice said.
She was to see Olmert later in the day. The Israeli leader and Mr Abbas have voiced a readiness to meet but set no date.
In Gaza, Palestinian Prime Minister Ismail Haniyeh of Hamas accused Rice of serving "an American and Israeli agenda".
He called on Mr Abbas "to avoid using the sword of time" and setting any deadlines in unity efforts.
"There is an elected Palestinian government which expresses the will of the Palestinian voter. However, we have said we do not have a problem to resume the dialogue to form a unity government," Mr Haniyeh told reporters.