Photo Credit: Abed Rahim Khatib / Flash 90
In Gaza, the flags of Hamas and the Ramallah-based, Fatah-led Palestinian Authority both fly.

Palestinian sources are reporting that Hamas and Fatah have reached a preliminary reconciliation agreement today. The agreement indicates that the next government will be seated in Gaza, and will exclude current Prime Minister Salam Fayyad of Fatah and possibly also exclude Ismael Haniyeh of Hamas, and Jerusalem will be the capital of the Palestinian state.

In a change in positions, Hamas will now support efforts to receive full state level membership in UN organizations.

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Other issues discussed were elections in the Palestinian Authority. The last election was held almost 7 years ago and will be 3 years overdue in January.

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