Hamas has won a huge majority in parliamentary elections as Palestinian voters rejected the long-time rule of the Fatah Party.
Of the 132 seats in Parliament, Hamas won 76 and Fatah 43, the election commission announced on Thursday.
Palestinian Prime Minister Ahmed Qureia and his Cabinet resigned, even before the official results were announced, and Palestinian leader Mahmoud Abbas was to ask Hamas to form the next government.
The top Hamas leader, Khaled Mashaal, told Abbas his group is ready for a political partnership, Hamas said.
And in a first sign of pragmatism, Mahmoud Zahar, a top Hamas official, said the group would extend its year-old truce if Israel reciprocates. "If not, then I think we will have no option but to protect our people and our land," he said.
Loyal opposition
Fatah legislator Saeb Erekat said the party does not want to join a Hamas government. "We will be a loyal opposition and rebuild the party," Erekat said, after meeting Abbas.
But Nabil Shaath, another senior Fatah lawmaker, said the party's leadership would make a decision later on Thursday.
Abbas was elected separately a year ago and remains president. However, the Palestinian leader has said he would resign if he could no longer pursue his peace agenda.
Before the election, Hamas had suggested it would be content as a junior partner in the next government, thus avoiding a decision on its relationship with Israel.
Throughout the campaign, leaders sent mixed signals, hinting they could be open to some sort of accommodation with Israel. Its apparent victory will now force it to take a clearer position on key issues.
Mushir al-Masri, a Hamas candidate who won election in the northern Gaza Strip, said peace talks and recognition of Israel are "not on our agenda" but the group is ready for a partnership - presumably with Abbas.
Some Hamas officials tried to reassure the world of its intentions.
"Don't be afraid," Ismail Haniyeh, a Hamas leader, told the BBC. "Hamas is a Palestinian movement; it is an aware and mature movement, one which is politically open in the Palestinian arena, and to its Arab and Islamic hinterland, and similarly open to the international arena."
This was the first time Hamas has contested a parliamentary vote.
Half the seats in Wednesday's parliament vote were chosen on a national list and the other half by districts.
Turnout for Wednesday's vote was heavy, with nearly 78% of 1.3 million eligible voters casting ballots. The polling stations were heavily guarded, and there were no reports of major violence.
PHOTO CAPTION
Shaikh Ahmed Yassin and Abdul-Aziz al-Rantissi. (Archive)