The Palestinian president says the Palestinian Liberation Organisation (PLO) will continue to handle future peace negotiations with Israel.
That is despite a deal between the president's faction, Fatah and its rival Hamas, to form a unity government.
Israel's prime minister has made it clear that the Palestinian Authority must choose between peace with Israel and reconciliation with Hamas.
The Palestinian Authority may not be too concerned about Israel's ultimatum, but there is concern over international reaction to the deal, particularly Hamas' role in the security apparatus
Al Jazeera's Sherine Tadros reports from Ramallah in the West Bank.