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Israeli leaders have ruled out negotiations with any Palestinian government that includes Hamas following a  Palestinian unity deal between rivals Hamas and Fatah.

Benjamin Netanyahu, the Israeli prime minister, convened his security cabinet on Thursday, while Israeli President Shimon Peres called the rapprochement a "grave mistake that will prevent the establishment of a Palestinian state and will sabotage chances of peace and stability in the region".

In an interview with Israeli military radio, Avigdor Lieberman, Israel's foreign minister, said the Palestinian deal had "crossed a red line" for Israel.

The comments come a day after Hamas and Fatah reached an initial unity deal in Cairo to end a four-year-old dispute that left Fatah controlling the West Bank and Hamas controlling Gaza. The Palestinians claim both territories for a future independent state.

The Egyptian-brokered deal, which took many by surprise, has revived hopes of ending bitter infighting that weakened the Palestinians politically and killed dozens in violent clashes and crackdowns.

The Palestinian plan calls for the formation of a joint caretaker governme... >>>