The Hamas-led Palestinian government ordered its new militia off Gaza's streets on Friday following clashes with President Mahmoud Abbas's Fatah movement that stirred fears of civil war.
While Hamas said the move was meant to ease tensions, top officials from the militant group appeared close to rejecting an ultimatum from Abbas to back a proposal calling for Palestinian statehood that implicitly recognises Israel.
Abbas stunned Hamas on Thursday with his threat to call a referendum on the proposal within 40 days, effectively going over the government's head and setting the stage for a showdown.
Prime Minister Ismail Haniyeh, a senior Hamas leader, vowed his government would make no political concessions.
"We will not recognise the legitimacy of the occupation, we will not renounce resistance and we will not recognise unjust (interim peace) agreements," Haniyeh said at a Gaza mosque, though he made no statements directly rejecting the plan.
Hamas seeks to destroy Israel and has rejected Abbas's calls to soften its stance on the Jewish state, resulting in a growing power struggle since the Hamas took office two months ago after beating Fatah in January elections.
Hamas's position towards Israel has triggered an aid boycott that has brought the Palestinian Authority to its knees.
Raising the stakes, Abbas on Thursday gave Hamas 10 days to back a plan for a Palestinian state alongside Israel or face what would amount to a confidence vote.
Clashes between Hamas and Fatah have become more frequent since the Hamas-led unit was deployed last week. Government officials have said they will not disband the new force, despite calls from Abbas, but integrate it into regular police units.
VIOLENCE CONTINUES, ONE KILLED: Meanwhile, Israeli-Palestinian violence continued as Israel fired dozens of artillery shells into northern Gaza, killing a Palestinian farmer, medics said.
An army spokeswoman said soldiers had targeted areas from which militants had been firing rockets toward Israel and that the military regretted any civilian casualties.
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