World powers trying to broker Middle East peace said Islamic militant group Hamas must reject violence and recognise Israel or risk losing aid when it forms a Palestinian government.
But the so-called Quartet - made up of Russia, the European Union, the United States and the United Nations - stressed that international donors would continue to aid the caretaker government of President Mahmoud Abbas, at least until a new government was formed.
Senior Hamas leader Ismail Haniyeh (L) shakes hand with Jordan's ambassador Yehya Al-Qarala. Al-Qarala said that Jordan will continue to support Palestine after Hamas' parliament victory.
The goal was to give Hamas, which won a shock victory in Palestinian parliamentary elections last week, some breathing space to change its policies before forming a new government, possibly within three months, said US and E.U officials.
"The Quartet concluded that it was inevitable that future assistance to any new government would be reviewed by donors against that government's commitment to the principles of non-violence, recognition of Israel, and acceptance of previous agreements and obligations," said a statement by the Quartet.
Hamas immediately rejected the conditions listed by the Quartet and said it was up to Israel to change.
"The Quartet should have demanded an end to (Israeli) occupation and aggression . . . not demanded that the victim should recognise the occupation and stand handcuffed in the face of the aggression," a Hamas spokesman said.
European Union foreign policy chief Javier Solana told reporters afterward it could take up to three months before a new Palestinian government was formed and vital EU funding would continue at least until then. Last year, the EU gave the Palestinian Authority €500 million.
US Secretary of State Condoleezza Rice, who had been pushing for a strong statement against Hamas from the Quartet, reiterated that the militant group must adapt.
"There are responsibilities which come with governing," she said at the news conference, adding that the Palestinians deserved a better life.
UN Secretary-General Kofi Annan said: "If Hamas . . . transforms itself from an armed movement into a political party respecting the rules of the game . . . I think the international community should be able to work with them."
Both Hamas and Mr Abbas, whose Fatah party lost at the polls against Hamas in last week's parliamentary elections, appealed earlier to foreign donors to lift threats to cut vital aid.