According to Israeli sources, top officials in the Israeli government have threatened to cut all ties with the Palestinian Authority if a "national unity" agreement is made between Palestinian factions.

"If Abbas decided to return to a unity government with Hamas, Israel would not carry out negotiations with him and would stop the talks on the permanent status", said an unnamed source from the Israeli government, on Israeli army radio Monday. The source was referring to talks between the major political factions in the Palestinian territories, Hamas and Fateh, which have been ongoing since Sunday.

The Hamas party was elected in the democratic elections in January 2006 to head the Palestinian government, but Israel and the United States refused to recognize the results of the election, claiming that Hamas is a "terrorist" organization. Israel and the U.S. have, since then attempted to prop up the rival Fateh party in an attempt to undermine the elected government of Hamas. Recent revelations have also shown that the U.S. and Israel funded Fateh militia groups that contributed to internal conflicts that have cost several hundred Palestinian lives since 2006.

The Israeli government source revealed that Israel is opposed to any national unity government that might be formed between Hamas and Fateh, and are instead hoping to replace the elected Hamas government with a Fateh government. This has already been accomplished in the West Bank. Hamas is still in control of the government in the Gaza Strip.