The Hamas-dominated Palestinian cabinet led by Prime Minister Ismail Haneya would resign within 48 hours, well-informed sources said on Thursday.
Haneya had planned to hand the letter of resignation to President Mahmoud Abbas on Thursday evening, but Abbas, who was to meet visiting French foreign minister at his Ramallah headquarters could only travel to the Gaza Strip on Friday, said the sources on condition of anonymity.
The move was part of preparations for forming a new Palestinian government with the participation of Fatah, paving the way for the resumption of badly-needed Western aid.
Many world donor countries have cut off direct aid to the Palestinians since Hamas came to power after its victory in the January elections.
Though many portfolios would be re-designated, Abbas confirmed on Wednesday that Haneya is the one that would be asked to form and lead the 11th Palestinian coalition government.