Hamas leader Mahmud al-Zahar said on Wednesday that the Egyptian envoys in a previous meeting did not present solutions to the Islamist group's concerns after a special election court ordered re-voting in parts of three localities where Hamas won wide support.
Hamas said the ruling Fatah Party was trying to steal its victories
"We see that re-voting will lead to grave consequences since we have explained that by facts and figures," al-Zahar told Aljazeera.
"We have discussed other options to pass this stage so we could establish the concept of election and not to put it out of action," he said.
Hamas does not want to disregard the opinion and the right of Palestinians to elect whoever represents them, al-Zahar said.
A five-hour meeting between Egyptian mediators and Hamas leaders in Gaza ended early on Wednesday with no progress towards resolving the elections dispute that could endanger a cease-fire with Israel.
Hamas has threatened to back out of a cease-fire with Israel because of the crisis, which is linked to manoeuvring over parliamentary elections set for the summer, but likely to be delayed.
"We see that re-voting will lead to grave consequences since we have explained that by facts and figures"
A delegation of Egyptian mediators has been meeting Fatah and Hamas leaders in Gaza to try to resolve the dispute.
Though no progress has been reported, it appears that Hamas is interested in resolving the issue and moving on to the more important parliamentary campaign.
Talks are to continue through the week, Hamas and Egyptian officials said.
Meanwhile, Islamic Jihad and the Egyptian team agreed that the crisis between Hamas and Fatah should be ended. Islamic Jihad discussed the issue with the Egyptian envoys in a meeting on Tuesday.
The movement's spokesman Nafidh Azzam told Aljazeera on Wednesday that "there has been a full agreement with our Egyptian brethren about putting an end to the difference on the municipal election in the Gaza Strip".
The movement is coordinating with the Egyptian delegation to settle the differences between Fatah and Hamas, Azzam said.
He said both Fatah and Hamas should pay more attention to what he called crucial issues.
"We have no choice but to reach an internal understanding," he said, adding that the Palestinians should unify and adopt a joint programme to confront Israel.