Rival Palestinian factions Hamas and Fatah announced Wednesday they 've agreed to reconcile -- a development that could see the Palestinian territories under a unified leadership for the first time in years . The sides , wrapping up two days of talks in Hamas-run Gaza , announced they will begin discussions to form a unity government . An interim government could be finalized in the next five weeks , with elections possible by early 2015 , Fatah spokesman Fayez Abu Eitta said . Wednesday 's announcement comes amid a deterioration of U.S.-brokered peace talks between the Palestinian Authority and Israel -- talks that Hamas , a militant Islamic group that has n't recognized Israel , opposed . Israeli Prime Minister Benjamin Netanyahu reacted strongly to the announcement . Israel and several other countries consider Hamas to be a terrorist organization . `` ( Palestinian Authority President Mahmoud Abbas ) needs to choose between peace with Israel and an agreement with Hamas , '' Netanyahu said in a statement released Wednesday by his media adviser . `` ... Whoever chooses Hamas does not not want peace . '' After the reconciliation was announced , Netanyahu 's office said Israel canceled peace negotiations that were scheduled to take place Wednesday night . Israel and the Palestinian Authority face an April 29 deadline to agree on a framework for a comprehensive peace treaty , but the sides appear far apart . The Hamas-Fatah deal also came on an afternoon that an Israeli airstrike in the northern Gaza strip injured 12 people , including children and teenagers , according to Ashraf Al Qidra , a spokesman for the health ministry in Gaza . Al Qidra said it was a drone strike . The Israeli military said it conducted an airstrike in a counter-terror operation , but provided no other details . Mustafa Barghouti , a Palestinian lawmaker involved in the Hamas-Fatah talks , hailed what he called the `` end to the division between the Palestinian people . '' `` Palestinians are in a unified camp , and Israel can not claim that Palestinians can not negotiate on behalf of all Palestinians , '' Barghouti told CNN on Wednesday . The Palestinian territories of Gaza and the West Bank have been run separately for seven years . The split began taking shape in 2006 when Hamas , participating in Palestinian polls for the first time , won a majority in the Palestinian parliament . The Fatah-dominated Palestinian Authority formed a coalition government with Hamas that year , with Abbas retaining the presidency and Hamas member Ismail Haniya becoming prime minister . But when Abbas dissolved the government in 2007 , Hamas seized control of Gaza , and Haniya became Gaza 's de facto political leader . The West for years has shown support to Fatah and warned it not to join hands with militant Hamas , which several countries have deemed a terrorist organization . Reconciliation talks started Tuesday evening , after Abbas sent a Fatah delegation to meet with Hamas representatives in Gaza . It was n't immediately clear who would lead , though Abbas , whose Fatah group runs the West Bank , is a possibility for premier , Abu Eitta said .
Israeli airstrike injured 12 in northern Gaza strip , Gaza health ministry says . Reconciliation could put Gaza , West Bank under same government for first time since 2007 . Interim government could be formed in five weeks , Fatah spokesman says . Comment: