Syrian officials have helped salvage a key meeting between Palestinian Hamas and Fatah leaders that was abruptly cancelled on Saturday.
The Damascus meeting between Palestinian President Mahmoud Abbas and exiled Hamas leader Khaled Mashaal is aimed at ending the year-long bitter deadlock between the two sides.
They have butted heads over key issues such as Hamas' unwillingness to renounce violence or recognize Israel's right to exist, and control over the two factions' powerful security forces.
Many observers had hoped the meeting could bring progress in the efforts to form a national unity government. But the talks, originally scheduled for Saturday, were suddenly cancelled without explanation.
Abbas and Mashaal each met separately with Syria's vice president, Farouk al-Sharaa, after the original meeting was postponed.
Moussa Abu Marzouk, deputy head of Hamas' politburo, said that "active and serious mediation" by Syria succeeded in convincing Abbas and Mashaal to hold the long-negotiated meeting after all, later Sunday, restoring hope that progress was possible.
The militant Islamic group Hamas, considered by the U.S. to be a terrorist group, has controlled the Palestinian parliament and Cabinet since sweeping election wins last year.
However, Western sanctions were quickly brought in against the Palestinian territory after the election, crippling the economy.
Abbas, of the Fatah party, widely seen as a moderate, was elected as president in a separate election.
Abu Marzouk told The Associated Press that the main disagreement going into the talks is the conditions under which Abbas would name a new prime minister for a national unity government.
Abbas is demanding that Hamas recognize Israel's right to exist, and abide by past agreements signed between Israel and the Palestinians -- a demand shared by Israel and the international community.
But Hamas has said it will only abide by agreements it believes are fair to the Palestinians.
Western nations have said Hamas must accept Israel's existence and renounce violence, before the ongoing economic boycott will end.
Abbas and Mashaal last met in July 2005.
Abbas has threatened to call early elections if the two sides cannot agree.
With files from The Associated Press