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Associated Press
Emir of Qatar Sheikh Hamad Bin Khalifa Al-Thani , center, and Palestinian President Mahmoud Abbas, left, and Hamas leader Khaled Meshaal, right, arrive to sign an agreement in Doha, Qatar, on Monday Feb. 6, 2012. The main Palestinian political rivals of Kaled Mashall Chief of the Islamic militant Hamas and Palestinian President Abbas, took a major step Monday toward healing their bitter rift, agreeing that Palestinian President Mahmoud Abbas would head an interim unity government to prepare for general elections in the West Bank and Gaza. (AP Photo/Osama Faisal)

RAMALLAH, West Bank — After months of wavering, Palestinian President Mahmoud Abbas took a decisive step Monday toward reconciliation with the Islamic militant group Hamas, a move Israel promptly warned would close the door to any future peace talks.

In a deal brokered by Qatar, Abbas will head an interim unity government to prepare for general elections in the Palestinian territories in the coming months. Abbas appears to have concluded that he has a better chance of repairing relations with Hamas, shunned by the West as a terror group, than reaching an agreement with Israel's hardline prime minister, Benjamin Netanyahu.

Netanyahu quickly condemned the Doha deal. "It's either peace with Hamas or peace with Israel. You can't have them both," he said in a warning to Abbas, who has enjoyed broad international support.

In moving closer to Hamas, Abbas risks losing some of that backing and hundreds of millions of dollars a year in aid.

Qatar, awash with cash from vast oil and gas reserves, assured the Palestinians that it would help limit any political and financial damages, according to Palestinian officials close to the talks.

Whether the Palestinian Authority loses any of the roughly $1 billion in foreign aid it received each year may partly depend on the interim government's political platform and Hamas' willingness to stay in the background.

The new government is to be made up of politically independent experts, according to the Doha agreement. If headed by Abbas, devoid of Hamas members and run according to his political principles, it could try to make a case to be accepted by the West. Abbas aides said they were optimistic they could win international recognition.

The Quartet of international Mideast mediators — the U.S., the U.N., the European Union and Russia — has said it would deal with any Palestinian government that renounces violence, recognizes Israel and supports a negotiated peace deal. Abbas has embraced these principles, while Hamas rejects them.