Hamas is to finalise its cabinet and plans to submit the names to the Palestinian president, a spokesman for the group says.

Salah al-Bardaweel, a spokesman, said on Friday: "The government will be ready tomorrow with its formation and its ministers but we will not announce the government before we hand it over to the president."

Hamas defeated the Fatah movement of Mahmoud Abbas, the president, in elections in January. But it has been unable to reach an agreement with any rival Palestinian factions on forming a coalition.

The group has said it is prepared to form a government on its own.

Hamas ministers

Bardaweel said the list of ministers will be submitted to Abbas on Saturday if he goes ahead with a visit to the Gaza Strip for talks with Hamas officials.

Mahmoud al-Zahar, a Hamas leader in Gaza, whom Israel has tried to assassinate, would be appointed foreign minister, Hamas sources said.

Saeed Seyam, another Hamas leader, would become interior minister, giving him control over three Palestinian security agencies.

Recognise Israel

Abbas has demanded that Hamas abide by interim peace deals and recognise Israel.

Hamas has so far rejected such calls. It said in its draft programme published last week that the decision whether to recognise Israel rested with the Palestinian people, not with any political group or party.

Abbas had given Hamas two weeks to clarify its position before it presents an administration to parliament for a confidence vote. Hamas has an absolute majority in parliament.

Two parliamentary blocs informed Hamas on Thursday that they would not join the government. Several larger factions, including Fatah, were expected to turn Hamas down as well.

PHOTO CAPTION

Ismail Haniya, the Hamas leader set to become prime minister in the new Palestinian government, said he hoped he would sign a peace agreement with Israel. (AFP)