Palestinian political rivals Hamas and Fatah have called-off scheduled talks on forming a unity government.
In an apparent sign that deep differences remain, aides to President Mahmoud Abbas said he canceled Tuesday's meeting with Hamas leaders in Gaza.
No new meeting date was announced.
Earlier, Hamas said it is serious about reaching a deal on a unity government.
Mr. Abbas has said any unity government including Hamas would have to accept interim peace deals with Israel.
Hamas leaders say they want to share power with Fatah, but they will not accept language that explicitly recognizes Israel. The militant group's charter calls for the destruction of the Jewish state.
Hamas has said that it would instead support a long term truce with Israel.
The Palestinian president has accused Hamas of violating an agreement reached earlier this month on the political platform for a unity government. Hamas denies the charge.
Some information for this report was provided by AP and Reuters.