Fourteen Palestinian factions appear to have put aside some of their differences, opening the way for elections to be held.
The agreement includes the main rivals Fatah and Hamas and has been reached after talks in Egypt’s capital, Cairo.
The two sides have been at odds since Hamas won parliamentary elections in 2006 and held power in the Gaza Strip a year after.
There have been repeated attempts to hold elections in the past few years, but if these go ahead, they will be the first in 15 years.
The parliamentary and presidential votes are now set to take place in May and July, respectively.
How will Palestinian reconciliation affect attempts to find peace with Israel?
Presenter: Kim Vinnell
Mustafa Barghouti – Palestinian politician and secretary-general of the Palestinian National Initiative
Ofer Cassif – Knesset member representing the Hadash Movement
Ali Abunimah – Co-founder of the Electronic Intifada and author of The Battle for Justice in Palestine