Palestinian president Mahmoud Abbas' group Fatah has forged a surprise deal with their bitter rivals Hamas.
Meeting in Cairo on Wednesday, the feuding sides have agreed to form an interim government, and promised to hold elections within a year.
Israel, who said the deal was brokered secretly, said it would not bring peace to the region.
So what's in the Palestinian deal - and will it work this time round?
Inside Story presenter Darren Jordon discusses with guests: Akiva Eldar, the chief political correspondent for Haaretz; Hassan Issa, a former Egyptian diplomat to Israel, and also the former director of the Israel department for the Egyptian ministry of foreign affairs; and Mustafa Barghouti, the secretary-general for the Palestinian National Initiative.
This episode of Inside Story aired on Thursday, April 28, 2011.